Jasa Marga Ensuring Ensuring Synergy Human Resources Occupational Developing Governance Sustainability Customer to Manage Development Health Community of Economic Satisfaction Environment and Safety Welfare 2014 SUSTAINABILITYGrowth REPORT Guarantee PT Jasa Marga (Persero) Tbk

Connectivity for Sustainability Growth

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PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report 1 Sustainability 2014 Event Remarks from Remarks from About Company Performance Sustainability Highlights, President President Sustainability Profile Highlights Performance Awards and Commissioner Director Report 2014 Highlights Certification

2 PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report Jasa Marga Ensuring Ensuring Synergy Human Resources Occupational Developing Governance Sustainability Customer to Manage Development Health Community of Economic Satisfaction Environment and Safety Welfare GrowthConnectivity for Guarantee Sustainable Growth

Infrastructure is a material foundation and prerequisite that shall be taken into account in the economic development planning. Equitable distribution of infrastructure development, gives significant impact and contribution to the equitable distribution of economic development. Furthermore, a good road infrastructure will have direct impact on the increasing economic growth.

PT Jasa Marga (Persero) Tbk. (“Jasa Marga/the Company”) realizes that road infrastructure plays strategic role in connecting regions to achieve equitable distribution of public economic growth. The potential resources and natural assets among the regions can create a good synergy that serves as the economic development capital with the availability of adequate road infrastructure.

Connectivity among those regions shall be realized and the existence of toll roads managed by the Company shall provide benefits for the toll road users who require efficient and reliable roll road for free-flowing distribution of goods and services and equitable economic development can be achieved.

Jasa Marga will play significant role investor and operator of toll road is one of the companies who will play role significantly to realize the toll road infrastructure development in the next 5 years. In line with its mission, the Company consciously understands its existence in performing its business activities as toll roads developer and operator, the Company has duties to realize the acceleration of toll road development to support and the economic growth program launched by the Government. The experiences anc capacity of Jasa Marga in realizing the toll road development in Indonesia is a capital to achieve such opportunity.

Jasa Marga encourages more efficient and faster business process so that such challenge and big opportunity can be achieved and executed. The Company’s performance in providing excellent quality of toll road infrastructure is part of Jasa Marga’s contribution to present national economic sustainable growth

Table of Contents

Theme and Meaning 1 Company Profile 43 Table of Contents 1 Jasa Marga Governance 54 GRI G4 Core Index 2 Ensuring Sustainability of 74 Economic Growth Sustainability Performance 6 Highlights Synergy in Environmental 80 Management 2014 Sustainability Performance 18 Highlights Ensuring Customer Satisfaction 94 Event Highlights, Awards and 20 Human Resources Development 104 Certification Occupational Health and Safety 112 Remarks from President 26 Guarantee Commissioner Developing Community Welfare 120 Remarks from President Director 30 Feedback Form 131 About Sustainability Report 2014 35

PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report 1 Sustainability 2014 Event Remarks from Remarks from About Company Performance Sustainability Highlights, President President Sustainability Profile Highlights Performance Awards and Commissioner Director Report 2014 Highlights Certification

Index GRI G4 Core

Index Indicator Pages

GENERAL STANDARD DISCLOSURE

Strategy and Analysis

G4-1 Report from the Board of Commissioners and Management Report 24, 28 (CEO)

Organization Profile

G4-3 Organization Name 41

G4-4 Products and Services 42

G4-5 Location of the Organization’s Headquarters 41

G4-6 Operations Area 43

G4-7 Ownership and Legal Form 41

G4-8 Market Share 43

G4-9 Scale of the Organization 46

G4-10 Employees Distribution 107

G4-11 Percentage of Total Employees Covered by Collective Bargaining 111 Agreements

G4-12 Supply Chain 71

G4-13 Significant changes during Reporting Period 47

G4-14 Precautionary and Prudence Approach and Principle 62

G4-15 International initiative in environmental and social subscribed and 71 adopted

G4-16 Membership of Industry Association 71

Material Aspect and Boundary

G4-17 List of Subsidiaries 35, 42

G4-18 Process for Defining Content and Boundary 35

G4-19 List of Identified Material Aspect 37

G4-20 List of Boundary 38

G4-21 Boundary outside the Organization 38

G4-22 Effect of any restatements of information in previous reports 34

G4-23 Significant changes from previous scope and aspect boundaries 34

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Index Indicator Pages

Stakeholders

G4-24 List of Stakeholders 68

G4-25 Basis for Stakeholders Identification 68

G4-26 Approach to Stakeholders Engagement 68

G4-27 Topics sdiscussed with Stakeholders 68

Report Profile

G4-28 Reporting Period 34

G4-29 Publication of Previous report 34

G4-30 Reporting Cycle 34, 38

G4-31 Contact Person 38

GRI G4 Content Index

G4-32 Option “In Accordance”, Index List and Assurance 34

Assurance

G4-33 External Assurance 38

Governance

G4-34 Governance Structure 56

Ethics and Integrity

G4-56 Corporate Values and Ethics 50, 66

SPECIFIC STANDARD DISCLOSURES

CATEGORY: ECONOMIC

Aspect: Economic Performance

G4-DMA Disclosures on Management Approach 75

G4-EC1 Direct Economic Value Generated and Distributed 77

G4-EC2 Impact of climate change 76, 88

Aspect: Market Presence

G4-DMA Disclosures on Management Approach 108

G4-EC5 Ratio of new employee salary to regional minimum wage (UMR) 108

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Index Indicator Pages

Aspect: Indirect Economic Impacts

G4-DMA Disclosures on Management Approach 123

G4-EC7 Impact of general facilities development and other supports 126

G4-EC8 Significant Indirect Economic Impacts 124

CATEGORY: ENVIRONMENT

Aspect: Energy

G4-DMA Disclosures on Management Approach 82

G4-EN3 Energy Consumption within the Organization 84

G4-EN6 Reduction of Energy Consumption 86

Aspect: Emission

G4-DMA Disclosures on Management Approach 87

G4-EN15 Direct Green House Gas Emission (GHG) 87

G4-EN19 Reduction of Green House Gas Emission (GHG) 89

SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK

Aspect: Employment

G4-DMA Disclosures on Management Approach 108

G4-LA1 Employee Turnover 110

G4-LA2 Benefits Provided to Full-Time Employees that are not Provided to 109 Temporary Employees

Aspect: Occupational Health and Safety

G4-DMA Disclosures on Management Approach 115

G4-LA6 Injury rate, absenteeism rate caused by occupational diseases, or lost 118 days

G4-LA8 Health and Safety Topics Covered in Collective Bargaining 116 Agreements

Aspect: Training and Education

G4-DMA Disclosures on Management Approach 110

G4-LA9 Average Hours of Training Per Year Per Employee 110

G4-LA10 Training Program for Employees Entering the Retirement Period 110

Aspect: Diversity and Equal Opportunity

G4-DMA Disclosures on Management Approach 105

G4-LA12 Composition of governance bodies and employees distribution 107

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Index Indicator Pages

Aspect: Equal Remuneration for Women and Men

G4-DMA Disclosures on Management Approach 108

G4-LA13 Ratio of basic salary and remuneration of women to men 108

Aspect: Supplier Assessment for Labor Practices

G4-DMA Disclosures on Management Approach 71

G4-LA14 Supplier screening based on labor practices criteria 71

SUB-CATEGORY: HUMAN RIGHTS

Aspect: Freedom of Association and Collective Bargaining Agreement

G4-DMA Disclosures on Management Approach 111

G4-HR4 Violation on Freedom of Assocation within Organization or Supplier 111

Aspect: Supplier Human Rights Assessment

G4-DMA Disclosures on Management Approach 71

G4-HR10 Supplier screening using human rights criteria 71

SUB-CATEGORY: SOCIETY

Aspect: Local Communities

G4-DMA Disclosures on Management Approach 123

G4-SO1 Percentage of Operations with Implemented Local Community 125 Engagement, Impact Assessments, and Development Programs

Aspect: Anti-corruption

G4-DMA Disclosures on Management Approach 62

G4-SO4 Communication and Training on Anti-Corruption Policies and 63 Procedures

SUB-CATEGORY: PRODUCT RESPONSIBILITY

Aspect: Product and Service Labeling

G4-DMA Disclosures on Management Approach 95

G4-PR5 Results of survey measuring customer satisfaction 105

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Sustainability Performance Highlights

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Economic Performance

Jakarta-Cikampek Toll Road

The Operating Revenues of Company consists of the Toll Revenues, Construction Revenues, and Other Operating Revenues. In 2014, the Company’s Operating Revenues amounted to Rp9.18 trillion or decreased by Rp9.18 Trillion 10.67% from the Operating Revenues earned in 2013 amounted to Rp10.27 trillion. From the Toll Revenues, there was an increasing figure by 14.54% from Rp5.80 Operating trillion in 2013 to Rp6.65 trillion in 2014. The operating revenues decreased because of the decreasing number Revenues of Construction Revenues by 50.87% from the previous year. Apart from the Construction Revenues, the Company’s Operating Revenues increased by 14.56%.

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The current year comprehensive income Rp Trillion amounted to Rp1.22 trillion, increased 1.40 by 31.08% compare to year 2013 which amounted to Rp927.59 billion. Current Year The current Comprehensive Income Comprehensive attributable to the owner of the parent Income Attributable entity amounted to Rp1.40 trillion, to Owner Entities which increased by 36.77% compare to 2013. Meanwhile the comprehensive income attributable to non controlling interest amounted to Rp188.10 billion.

Tax payment paid by the Company in 2014 amounted Rp702.10 Billion to Rp702.10 billion, which increased by 19.83% compare Contribution to to the tax payment in 2013 the State amounted to Rp585.90 billion.

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ENVIRONMENTAL PERFORMANCE

Forestation

To optimize the implementation of Rp Billion environmental management program 31.23 and activities, the Company specifically has allocated fund for environmental Environmental management. In 2014, the Company Management has disbursed fund for environmental management amounted to Rp31.23 billion. Fund

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7,004 The usage of PJU lights by using locations LED, for eletricity energy saving in 7,004 locations. LED Light Usage

Natural preservation donation amounted to Rp772,791,986,- in the form of planting 2500 productive Rp772.79 Million trees of mango, sapodilla fruit, soursop, rambutan and guava in Natural two locations of Cisadane river, Panunggangan village, Tagerang Preservation amounted to 1000 trees and in Jumputsari villave, Sukomanunggal, Sidoarjo amounted to 1500 trees.

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Toll road forestation as part of mitigation efforts on the impact of > 127,000 Trees climate change by planting more than 127,000 trees spread out to be planted nearby the toll road in Toll Road 2014, among others are the trees of mahogany, trembesi, acacias, and Forestation others.

Bintaro plant planting and conservation 3,000 implemented by Subsidiary, PT Trees Jalantol Lingkarluar Jakarta (JLJ) as the Company’s subsidiary amounted to 3,000 trees. PT JLJ has involved all employees in the conservation Bintaro Plant program, from the process of sampling Planting and and selection of bintaro plant seeds to the process of planting the bintaro Conservation plant.

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Social Performance

Free Healthcare for Resident

Partnership Program (PK) in Rp13.49 Billion 2014, Community Development Program has distributed fund amounted to Rp13,485,000,000,- Partnership in which such fund has been Program Fund absorbed by 373 parters spread throughout the areas of Jasa Maga branches.

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Fund distributed for business Rp767.89 Million development (trainings and exhibitions) in 2014 amounted Business to Rp767,888,437,- that consists of trainings fund amounted to Development Rp274,346,437,- and promotion Fund amounted to Rp493,538,000,-.

Rp Billion In 2014, the Environmental Development 9.90 Program distributed amounted to Rp9,904,466,277,- which decreased by 34% Environmental from the previous year 2013. Development Program Fund

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Percentage of the lowest reward >180% disbursed by the Company amounted to Rp3,608,000. This figure was greater 180% compare to UMR of Lowest Reward related areas. The reward given or promoted employees who are Compared with competent without considering UMR gender or SARA issues.

In 2014, the Company has m2 1,078,659,51 implemented SFO activities to maintain the quality of toll Scrapping Filling road amounted to 1,105,277 m2 spread throughout the corridors Overlay (SFO) managed by the Company. Toll Road

Fund disbursed for the activities Rp507.07 concerning the responsibilities Billion to consumers in 2014 amounted to Rp507.07 billion. Consumers CSR Fund

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2014 Sustainability Performance Highlights

DESCRIPTION 2013 2014

ECONOMIC PERFORMANCE

Financial Performance (Rp billion)

Operating Revenues 10,271.48 9,175.32

Operating Income 2,259.16 3,044.04

Comprehensive Income 928.79 1,215.33

Earnings per Share (full Rupiah) 151 206

Distributed Benefits to Economy (Rp billion)

Payment to Supplier and Third Party 1,440.83 1,956.10

Payment to Employees 1,196.20 1,288.70

Payment of Operation Cooperation Expenses 308.00 313.04

Payment for Tax 585.90 702.10

Payment for Interest Loan 717.37 1,117.38

Payment for Dividend 640.84 537.10

SOCIAL PERFORMANCE

Employees Diversity

Total Men Employees 3,816 3,661

Total Women Employees 1,059 1,031

Employees Turnover Rate (%) 0.04 0.06

Community Investment (Rp billion)

Distribution of Partnership Program Loan Fund * 13.49

Distribution of Environmental Development Fund 13.31 9.90 (social community)

Accumulated Partners as of December 31 22,004 22,377

Customers

Customer Satisfaction Level Index (scale 1-6) 4.03 4.41

Scrapping Filling Overlay/SFO (in m2) ** 1,078,659.51

Toll Roal Service Improvement Expense (Rp billion) ** 507.07

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DESCRIPTION 2013 2014

Environmental Performance

Distribution of Natural Preservation Fund (Rp million) 1,396.08 772.79

Energy Consumption

Total Electricity Energy Consumption (KWh) 48,708,924 30,348.963

Primary Source of Energy Consumption (Litre ) 2,887,315 1,511,816

Consumption of Water Volume taken from PDAM (m3) ** 788,550.57

Green Plant

Trees Planting (trees) 86,233 127,000

* Year 2013 Jasa Marga does not allocate funds to the Partnership Program ** Year 2013 no information disclosed

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Event Highlights, Awards and Certification

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2014 Event Highlights

January 16, 2014 March 19-26, 2014

Bumn Care Jasa Marga Goes to Campus Jasa Marga through Jasmapala As part of Jasa Marga concern to directly gave 1000 (a thousand) the education, especially to the donation packages for suffered university students, the Company flood victims in 10 locations in conducted socialization concerning Jakarta. the tips of safety driving in toll road. This activity was conducted in Intitut Teknologi Bandung (ITB), Universitas Bina Nusantara (Binus), Universitas Indonesia (UI), Universitas Siswa Bangsa Internasional (USBI) and Universitas Trisakti, with the Company’s Board of Directors as speakers.

June 4, 2014 June 15, 2014

Safety Driving 2014 Customers Gathering Jasa Marga organized Safety Jasa Marga together with some Dricing to educate the road users vehicles community to organize to drive properly in toll road, Jasa customers gathering in Jatiluhur Marga organized Safety Driving Reservoir Tourism, Purwakarta. for university students from various universities in Sentul circuit.

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Event Highlights

June 18, 2014 December 24, 2014 Desember

Green Award Cooperation with BNN Community Development Jasa Marga received Indonesia Jasa Marga together with Program Green Award 2014 in Jakarta. National Narcotics Board (BNN) Jasa Marga distributed The Judges evaluated that Jasa participated in the drug abuse partnership program fund to 373 Marga has developed and used eradication. One of the activities partners spread throughout the new and renewable energy, is placing billboard on the drug areas of Jasa Marga branches in addition, Jasa Marga also use prevention in Rest Area KM amounted to Rp13,485,000,000. pioneered in pollution prevention 62 B Cikampek Toll Road. by planting trees in toll road areas.

December 18, 2014 December 21, 2014

Care for Banjarnegara Care for Sinabung Landslide Victims Jasa Marga also participated in As part of humanity concern, providing donation aid for Mount Jasa Marga also distributed 1,000 Sinabung eruption victims in packages of sleeping padd and Karo. The donation given in the blankets to the landslide victims form of staple food including in Banjarnegara. rice, cooking oil, and cash.

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Awards and Certification

June 5, 2014 June 18, 2014

Service Quality Award Indonesia Green 2014 Awards 2014 Golden Rank Category : Category: Toll Road • Developing and using new and renewable Service Excellence energy (to use Light Magazine Emiting Diode (LED) for the public road lights, Green Building and usage oflow octane Fuel) • Pioneering the pollution prevention (toll road forestation program to absorb CO2 resulted from vehicles on toll road)

La Tofi School of CSR

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NOVEMBER 11, 2014 NOVEMBER 27, 2014 DECEMBER 1, 2014

Sustainable and Indonesia Human HR Excellence Award Responsible Capital Study (IHCS) 2014 Investment Index (SRI) Award 2014 Good Rank KEHATI Appreciation Category: The Best Category: 2014 for Human Capital • HR Transformation Initiatives • Reward Management Yayasan Keanekaragaman Hayati Dunamis SWAnetwork dan (KEHATI) LMFE UI

Certification of Toll Road Management Quality Certification ISO 9001:2008 No. Branch Certification Since Validity Period (date-month-year) (date-month-year) 1. Jagorawi 10-01-2000 23-08-2014 s.d. 23-08-2017 2. Surabaya-Gempol 19-04-2001 19-04-2013 s.d. 19-04-2016 3. Palikanci 21-07-2004 21-07-2013 s.d. 21-07-2016 4. Belmera 12-10-2004 12-10-2013 s.d. 12-10-2016 5. Jakarta-Tangerang 26-06-2013 26-06-2013 s.d. 26-06-2016 6. Semarang 06-01-2005 06-01-2014 s.d. 06-01-2017 7. Jakarta-Cikampek 04-02-2005 04-02-2014 s.d. 04-02-2017 8. Cawang-Tomang-Cengkareng 15-02-2005 15-02-2014 s.d. 15-02-2017 9. Purbaleunyi 22-12-2004 22-12-2013 s.d. 22-12-2016

PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report 23 Sustainability 2014 Event Remarks from Remarks from About Company Performance Sustainability Highlights, President President Sustainability Profile Highlights Performance Awards and Commissioner Director Report 2014 Highlights Certification Remarks from President Commissioner [G4-1]

History has shown that sustainable competitive excellence can only be achieved through the balance of income (profit), social welfare (people), and natural preservation (planet). We support the management’s commitment and initiative to put sustainability as main pillar to achieve vision, mission, and strategy of Jasa Marga to grow with soundness, strongly and is accepted by all stakeholders as Good Corporate Citizen.

24 PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report Jasa Marga Ensuring Ensuring Synergy Human Resources Occupational Developing Governance Sustainability Customer to Manage Development Health Community of Economic Satisfaction Environment and Safety Welfare Growth Guarantee

Agoes Widjanarko President Commissioner

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Kegiatan pameran Perusahaan

Dear honored Stakeholders,

The changes on the business environment that are Competitive excellence is very dynamic have put competition and innovation as the driver for the Company to keep moving, not only determined by the changing, and transforming to be the winner and income excellence, but also able to provide added values for all stakeholders. need to be supported by the The dramatic changes on the business environment also encouraged the raising of new awareness excellence in social welfare that competitive excellence is not only determined and natural preservation. by the income excellence, but also need to be supported by the excellence in social welfare and natural preservation. Slowly but sure, the business practitioners realize that the concept of Triple Bottom Line or Profit, People, and Planet (3Ps) is a guidance that needs to be implemented in a planned, systematic, and sustainable in the business strategy and process.

26 PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report Jasa Marga Ensuring Ensuring Synergy Human Resources Occupational Developing Governance Sustainability Customer to Manage Development Health Community of Economic Satisfaction Environment and Safety Welfare Growth Guarantee

We, as the Board of Commissioners together with the awareness and participation in the form of good the Board of Directors of Jasa Marga fully realize corporate governance based corporate culture, that the sustainable competitive excellence of Jasa ethical business practices, and also acceptable Marga is highly dependent on our commitment and recognized business entity by the community and initiative in implementing the concept of Triple around its operating area and become a Good Bottom Line. Therefore, we have implemented the Corporate Citizen. balance between profit – people – planet in our strategy that is stated in the Corporate Long Term The theme of Jasa Marga Sustainability Report for Plan (RJPP) or Corporate Budget and Work this year is “Connectivity for sustainable growth” Plan (RKAP). which represents the roles and vision of Jasa Marga to be a driver for the national economic growth This sustainability report integratedly explained the through the connectivity of sources and national economic, social, and environmental performances. economic growth acceleration potential in which This sustainability report showed the commitment Jasa Marga has big role and contribution. As an of Jasa Marga to communicate all work and activity entity that facilitates the operations of toll road, Jasa programs in economy, social, and environment in Marga plays strategic role in connecting the center accordance with the best practices based on the and distribution of public economic to create added Global Reporting Initiative (GRI 4.0). values of regional and national economic and in turn is able to increase the acceleration of national We keep supporting the management effort to economic growth. explore the entire potential of Jasa Marga people in social and environmental investment so it can grow

Jakarta, February 2015

Agoes Widjanarko President Commissioner

PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report 27 Sustainability 2014 Event Remarks from Remarks from About Company Performance Sustainability Highlights, President President Sustainability Profile Highlights Performance Awards and Commissioner Director Report 2014 Highlights Certification Remarks from President Director [G4-1]

This Sustainability Report is part of the management’s commitment and initiative of Jasa Marga in implementing the triple bottom line concept in which the sustainable competitive excellence can be achieved from the balance between profit, social welfare (people), and surrounding natural preservation (planet). We always put sustainable matters as inseparable part from the daily business process and strategy. We keep encouraging initiatives from Jasa Marga people in improving the economic performance and at the same time improving the social and environmental performance aroud the site operations.

28 PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report Jasa Marga Ensuring Ensuring Synergy Human Resources Occupational Developing Governance Sustainability Customer to Manage Development Health Community of Economic Satisfaction Environment and Safety Welfare Growth Guarantee

Adityawarman President Director

PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report 29 Sustainability 2014 Event Remarks from Remarks from About Company Performance Sustainability Highlights, President President Sustainability Profile Highlights Performance Awards and Commissioner Director Report 2014 Highlights Certification

Dear honored Stakeholders,

Our experiences in the last few years, has grown facilitates the operations of toll road, Jasa Marga the faith that a sustainable competitive excellence plays a strategic roles in connecting the centers might be achieved through the balance between the and distribution of public economics to be able to economic performance (profit), employees support, generate added values of the regional and national and social environment (people), also support of the economic and in turn will be able to improve the surrounding environment (planet). We aware that acceleration of the national economic growth. Triple Bottom Line (3Ps)is not only a concept that needs to be understood but also be implemented in In 2014, we have implemented activities concerning daily business process and strategy. the environmental preservation among others are 7,004 locations that use LED light, amounted Therefore, we have positioned the principles of Triple to 127,000 trees planted as part of the toll road Bottom Line in the corporate strategy stated in the forestation, amounted to 3,000 for planting and Corporate Long Term Plan (RJPP) or Corporate conservation of Bintaro plant. Budget and Work Plan (RKAP). In 2014, Jasa Marga has allocated fund amounted to Rp31.23 Billion Concerning with the community development, in for the environmental management fund. Such 2014 we have held various activities and initiatives commitment then elaborated through the units among other are commitment of fund, distribution who are responsible on various work programs amounted to Rp767.89 million for business particularly related with social and environmental development fund Environmental Preservation responsibility. Such commitment also stated in the program fund amounted to Rp9.90 billion, budget allocated particularly to encourage some Scrapping Filling Overlay (SFO) of 1,078,659.51 activities and programs in the field of community m2 to maintain the toll road quality throughout all development, occupational health and safety, consumer protection and education, and programs in surrounding natural preservation. “Connectivity for sustainable The theme of this year Sustainability Report is “Connectivity for sustainable growth” represents the growth” represents the roles and vision of Jasa Marga to act as a driver for the national economic growth acceleration through roles and vision of Jasa Marga the improvement of connectivity of the national to act as a driver for economic potential in which Jasa Marga plays big roles and contribution. As a business entity who the national economic growth acceleration through the improvement of connectivity of the national economic potential in which Jasa Marga plays big roles and contribution

30 PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report Jasa Marga Ensuring Ensuring Synergy Human Resources Occupational Developing Governance Sustainability Customer to Manage Development Health Community of Economic Satisfaction Environment and Safety Welfare Growth Guarantee

corridors managed by Jasa Marga, and Corporate This sustainability report is inseparable part from the Social Responsibility fund for customers amounted annual repot in which both reflect our holistic vision, to Rp507.07 billion. commitment, and initiative in bringing Jasa Marga to become a modern corporate with good corporate In the future, we will keep improving the governance, enterprise risk management, and commitment on fund allocation concerning with the corporate social and environmental responsibility. social and environmental responsibilities concerning We believe that all of our effort will drive the trust the aspect of community development, education from investors and stakeholders (public & market and consumer protection, occupational health and confidence). safety, and nature and environmental preservation.

Jakarta, February 2015

Adityawarman President Director

PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report 31 Sustainability 2014 Event Remarks from Remarks from About Company Performance Sustainability Highlights, President President Sustainability Profile Highlights Performance Awards and Commissioner Director Report 2014 Highlights Certification

Prof. Dr. Ir. Sedyatmo Toll Road

“This sustainability report is a prove to our commitment in ensuring the sustainable business” [G4-22, G4-23, G4-28, G4-29, G4-30, G4-31]

32 PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report Jasa Marga Ensuring Ensuring Synergy Human Resources Occupational Developing Governance Sustainability Customer to Manage Development Health Community of Economic Satisfaction Environment and Safety Welfare Growth Guarantee

About 2014 Sustainability Report

This sustainability report is prepared with GRI G4 reporting standard. The topic and content of the report are based on the consideration of materiality principle for the stakeholders. The information delivered comprising of the overall economic, environmental, and social performance.

Always delivering added values for the stakeholders Year 2007 concerning Limited Liability Company, is a real action implemented by Jasa Marga that require the Limited Liability Company to deliver (Company) as part of its commitment in maintaining corporate social responsibility report in the annual the sustainable business. This was implemented by report. Furthermore, as public listed company, to preparing Sustainability Report that is specifically fulfill the provisions of Financial Services Authority explained the strategy and performance of Jasa (OJK) through the Decision of Bapepam-LK Marga in ensuring the sustainability of its business Chairman Number: KEP-431/BL/2012 dated August and other business-related from the perspective 1, 2012, concerning the Annual Report Submission of of Triple Bottom Line (TBL) comprising of people, Public Company by delivering the corporate social planet, and profit. responsibility activities report in a separate report as in Sustainability Report. The submission of this This sustainability report is the fifth report prepared sustainability report is specifically part of Company’s by Jasa Marga based on Global Reporting Initiative commitment to always delivering added values (GRI) reporting standard. This report is published that will be prepared in parallel annually with the in accordance with the provisions of Law No. 40 Company’s annual report.

PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report 33 Sustainability 2014 Event Remarks from Remarks from About Company Performance Sustainability Highlights, President President Sustainability Profile Highlights Performance Awards and Commissioner Director Report 2014 Highlights Certification

Gambar: Pengelolaan Lingkungan

Jagorawi Toll Road

Reporting Period sustainable performance growth. With this report, the stakeholders can assess the implementation We are committed to prepare and deliver of corporate social responsibility implemented by Sustainability Report annually. The 2014 Jasa Marga as mandated by the prevailing rules and Sustainability Report provided information with regulations. reporting period from January 1, 2014 to December 31, 2014. The topic and content of the report are based on the materiality principle for the GRI G4 Core Standard stakeholders. The report disclosed information Reference covering the overal economic, environmental and In preparing this Sustainability Report, Jasa social performances. [G4-28] Marga used GRI G4 as standard reference. The Sustainability Report standard established by this The information disclosed in this report can be used Global Reporting Initiative (GRI), providing two as the reference for investors and stakeholders in criteria options in Sustainability Report preparation, making decision including creditors, employees which are G4 Core and G4 Comprehensive. As union, suppliers, customers, government, and previous report, this sustainability report is the other stakeholders. This sustainability report second year report with GRI G4 Core, that disclosed also maintains the continuity of information with basic and useful for stakeholders sustainability the previous reports to reflect the Company’s information in making decision. [G4-22, G4-23, G4-29, G4-30, G4-32]

34 PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report Jasa Marga Ensuring Ensuring Synergy Human Resources Occupational Developing Governance Sustainability Customer to Manage Development Health Community of Economic Satisfaction Environment and Safety Welfare Growth Guarantee

In disclosing information, we have put special mark Process of Determining Report for each relevant page as fulfilment indicator in accordance with GRI G4 Core standard. This is Content In determining the report content, in accordance expected can ease the readers in finding the related with the GRI G4 Standard, Jasa Marga considered information for each indicator. Furthermore, this 4 (four) principles, comprising of: 1) Stakeholders report is completed with the GRI G4 Core index list Inclusiveness; 2) Materiality; 3) Sustainability as the overal information guidance. Context; and 4) Completeness.

Report Boundary In determining the report content, we listened and The sustainability data and information provided considered the input from stakeholders. We asked in this report comprising of three performance opinions from stakeholders through survey to indicators which are economic, environmental, and determine materiality level of the reported issues social performances. The information concerning the and topics. This report only disclosed material issues, financial data covers the consolidated financial data that has significant impact for the stakeholders. of subsidiary. Until the end of 2014, Jasa Marga has The content report was determined based on the 13 subsidiaries with controlling capital investment, sustainability consideration, and only information as follows: PT Jalantol Lingkarluar Jakarta (JLJ), PT within the sustainability context is disclosed in Marga Sarana Jabar (MSJ), PT Trans Marga Jateng this report. The content report fulfilled the above (TMJ), PT Marga Kunciran Cengkareng (MKC), PT mentioned principles shall be supported with Marga Trans Nusantara (MTN), PT Marga Lingkar complete data in accordance with the scope and Jakarta (MLJ), PT Marga Nujyasumo Agung (MNA), reporting period as in the GRI G4 Core standard. PT Transmarga Jatim Pasuruan (TJP), PT Jasa Marga Bali Tol (JBT), PT Jasa Marga Pandaan Tol (JPT), The determination process of the report content PT Jasa Layanan Pemeliharaan (JLP) and PT Jasa was conducted through 4 (four) steps, as shown Marga Properti (JMP). There are 11 subsidiaries of in the Flow Chart of Determining Report Content. Jasa Marga who serve in toll road management and The first step, identifying the material aspects. The 2 other subsidiaries who serve in property. [G4-17] second step, prioritizing, by reviewing those material aspects and determining which aspects that are Meanwhile data and information concerning the prioritized to be reported. The third step, validating, environmental and social performances are from by considering the completeness of supporting both the parent company (head office and branch data of the information reported. The fourth step, office) and subsidiaries. The reporting material reviewing based on the input from stakeholders comprising of qualitative and quantitative data. for next report improvement. Those processes are shown as follows. [G4-18]

PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report 35 Sustainability 2014 Event Remarks from Remarks from About Company Performance Sustainability Highlights, President President Sustainability Profile Highlights Performance Awards and Commissioner Director Report 2014 Highlights Certification

Flow chart of determining report content

Step 1 Step 2 Step 3 IDENTIFICATION PRIORITY VALIDATION

2014 Sustainability Sustainability Materiality Complete Context Report

Stekehodlers Inclusiveness

Step 4 REVIEW

Sustainability Stakeholders Context Inclusiveness

Langkah 2

PRIORITAS

Langkah 4

REVIEW

36 PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report Jasa Marga Ensuring Ensuring Synergy Human Resources Occupational Developing Governance Sustainability Customer to Manage Development Health Community of Economic Satisfaction Environment and Safety Welfare Growth Guarantee

Determining Materiality Matrix [G4-19] Information disclosure in this Sustainability Report is based on the determination of material issues that become the concern of stakeholders in accordance with stakeholders inclusiveness principle. The stakeholders inclusiveness in providing input and opinions on the material issues on the management of Company’s business which was conducted through stakeholders survey comprising of employees union, suppliers, customers, toll road users, investors, associations, and NGO. The survey result on the material issues disclosed in the report, is shown in below materiality matrix chart.

Materiality Matrix Chart

Energy Efficiency

Employees Welfare High Toll Road Users Convenience Public Economy Empowerment Employees Welfare Services Quality Occupational Health Education and Training and Safety

Community Development Business Partner Supplier Human Rights

State Financial Revenue Medium Important for Stakeholder Important for Low

Low Medium High

Important for the Company

PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report 37 Sustainability 2014 Event Remarks from Remarks from About Company Performance Sustainability Highlights, President President Sustainability Profile Highlights Performance Awards and Commissioner Director Report 2014 Highlights Certification

e Co side th mpa Determining Materiality Aspects Out ny

and Boundary [G4-19, G4-20, G4-21] Clea ni ng Process in determining materiality aspects and boundary, S e rv which are the contents of this report are based on ic e the issues with significant impact to Jasa Marga and subsidiaries. The mechanism of determining materiality

*

aspects involving the employees of Jasa Marga from r

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several work units through G4 workshop conducted on r e

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Subsidiaries m

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February 28, 2014. The workshop participants were the e C

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i

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T s contributors of Sustainability Report 2014 data. From

the workshop result, the list of materiality aspects and

S y t e i r c boundary on the 2014 Sustainability Report content are u as follows:

Boundary Within the Company Material Aspect Outside Jasa the Jasa Marga * Since November 2013, Subsidiary Marga Company Subsidiary outsourced employees at the toll collector have Category: Economic Outside the Company been terminated. Economic Performance Market Presence Indirect Economic Impacts Report, the Company has not assigned Category: Environmental independent assuror to provide the assurance Energy services for the report due to tight timing. Emissions To ensure the reliability of the sustainable data, we are planning to assign independent Category: Social external assuror to provide the assurance Employment services on the sustainability report starting Occupational Health from the next reporting period. [G4-30] and Safety Training and Education Contact Address Diversity and Equal As part of sustainability report improvement Opportunity for the upcoming period, the suggestion and Supplier Assessment for Labor Practices feedback on this report can be delivered to Freedom of Jasa Marga through the contact below: Association and Collective Bargaining CORPORATE CONTACT [G4-31] Supplier Human Rights Assessment David Wijayatno Surrounding PT Jasa Marga (Persero) Tbk. Community Anti-corruption Head Office Product and Service Labelling Plaza Tol Taman Mini Indonesia Indah, Jakarta 13550, Indonesia Telepon : +6221 841 3630, 841 3526 External Assurance Faksimili : +6221 841 3540 Jasa Marga strive to improve the quality of this webiste : www.jasamarga.com sustainability report from year to year. Therefore, we e-mail : [email protected] always open for suggestion and input from any party of [email protected] shareholders or stakeholders. For this 2014 Sustainability

38 PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report Jasa Marga Ensuring Ensuring Synergy Human Resources Occupational Developing Governance Sustainability Customer to Manage Development Health Community of Economic Satisfaction Environment and Safety Welfare Growth Guarantee

PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report 39 Sustainability 2014 Event Remarks from Remarks from About Company Performance Sustainability Highlights, President President Sustainability Profile Highlights Performance Awards and Commissioner Director Report 2014 Highlights Certification

Jasa Marga Head Office

40 PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report Jasa Marga Ensuring Ensuring Synergy Human Resources Occupational Developing Governance Sustainability Customer to Manage Development Health Community of Economic Satisfaction Environment and Safety Welfare Growth Guarantee

Company Profile

Jasa Marga has 9 branches and 13 subsidiaries in the field of toll road management and construction. Jasa Marga together with its 11 subsidiaries in the field of toll road management are the concession holders for 23 toll road sections in which the 18 sections with 576 km has been operating.

Jasa Marga Brief Profile Based on the Extraordinary General Meeting of Shareholders on September 12, 2007 concerning PT Jasa Marga (Persero) Tbk. or Jasa Marga is State the amendment of entire Company’s Articles of Owned Enterprise company who serves in the field Association with regards to Initial Public Offering of management, maintenance and procurement of Shares, including the additional authorized, paid of toll road network, with head office in Plaza Tol up and fully paid capital, changes on nominal value Taman Mini Indonesia Indah Jakarta. Jasa Marga was and shares classification, changes on Company’s established since 1978 based on the Notarial Deed status from limited liability company to public listed No. 1 dated March 1, 1978, with the name, “PT Jasa company, and changes on the Company’s name to Marga (Indonesia Highway Corporation)”, which PT Jasa Marga (Persero) Tbk. [G4-3] later on amended based on the Notarial Deed No. 187 dated May 19, 1981 and the Company name was Based on Article 3 of the Articles of Association, changed to “PT Jasa Marga (Persero)”, both are the Company’s goal and objective are to participate drawn before the presence of Kartini Muljadi, SH., in implementing and supporting the Government Notary during that time in Jakarta. [G4-5, G4-7] policy and program in economy and national

PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report 41 Sustainability 2014 Event Remarks from Remarks from About Company Performance Sustainability Highlights, President President Sustainability Profile Highlights Performance Awards and Commissioner Director Report 2014 Highlights Certification

development in general, especially the development sections with 576 km has been operating, including in toll road procurement with supporting facilities by four new sections that were operated gradually implementing limited liability corporation principles. consisting of Bogor Outer Ring Road Sentul Selatan To achieve such goal and objective, the Company – Kedung Badak section (5.8 km), Semarang Solo implemented main business activities as follows: Toll Road Semarang – Bawean section (23.10 km), 1. Implement technical planning, construction, Surabaya – Mojokerto Toll Road Waru – Sepanjang operational and/or toll road maintenance. section (2.30 km), and fully operated Nusa Dua – 2. optimize land in toll road space (Rumijatol) and Ngurah Rai – Benoa Toll Road (10.00 km) and JORR land in borders with Rumijatol for rest and service W2 North Toll Road (7.70 km). So until the end area, with the other facilities and businesses. of 2014, the Company has controlled 72% market share of toll road industry in terms of road length Those business activities carried out by the (km) in Indonesia. [G4-4, G4-17] Company through process of planning, developing, operating, and maintaining the toll road and its In addition to toll road business, the Company also facilities so that the toll road is free-flow and provide involved in the non toll business to create synergy higher values compare to non toll road. and optimize the assets development owned by the Company. Such business activities are supported with Based on the Company’s Articles of Association, in the establishment of two subsidiaries comprising of addition to the main business activity, the Company PT Jasa Layanan Pemliharaan (JLP), prior named also conducts supporting business, comprising of: as PT Sarana Marga Utama, that was established 1. Property development in the areas near with the in 1988 and acquisitioned since 2010 that serves in toll road corridors. construction, trading and leasing of vehicles and PT 2. services development for businesses related Jasa Marga Properti that was established in 2013 with the mode of transportations, liquid/solid/ and serves in the development, trading, and services gas material distribution, information facility related with property. For both subsidiaries, the networks, technology and communication, Company is the controlling shareholder. related with the toll road corridors. 3. services and trading for toll road construction, Based on the business type carried out, the maintenance and operations services. Company’s operating revenues comes from the transaction of vehicles that passed the toll road (toll Jasa Marga has 9 branches and 13 subsidiaries in revenues) and non toll operating revenues comprising the field of toll road management and construction. of land rent, advertisement, rest areas, and toll road Jasa Marga together with its 11 subsidiaries in the operating services and maintenance services. field of toll road management are the concession holders for 23 toll road sections in which the 18

42 PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report Jasa Marga Ensuring Ensuring Synergy Human Resources Occupational Developing Governance Sustainability Customer to Manage Development Health Community of Economic Satisfaction Environment and Safety Welfare Growth Guarantee

Area of Operations of Jasa Marga [G4-6, G4-8]

Map of Jasa Marga Toll Roads Location as of 31 December 2014

NORTH SUMATERA • Belmera: 42,70 Km • Medan-Kualanamu-Tebing Tinggi: 61,70 Km

maluku

sulawesi sumatera

kalimantan

papua jawa

JABODETABEK AND CENTRAL JAVA BALI EAST JAVA EAST JAVA • Semarang: 24,75 Km • Nusa Dua - Ngurah Rai - Benoa: 10,00 Km • Surabaya - Gempol: 49,00 Km • Jagorawi: 59,00 Km • Semarang - Solo: 72,64 Km • Surabaya - Mojokerto: 36,27 Km • Jakarta - Tangerang: 33,00 Km • Gempol - Pasuruan: 34,15 Km • Ulujami- Pondok Aren: 5,55 Km • Gempol - Pandaan: 13,61 Km • Jakarta Inner Ring Road: 23,55 Km • Prof Dr. Ir. Sedyatmo: 14,30 Km Notes: • Jakarta - Cikampek: 83,00 Km • The Company’s toll road sections that are fully operated. • Jakarta Outer Ring Road: 43,10 Km • Cikampek - Padalarang: 58,50 Km • The Company’s new toll road sections, both not yet operated or already operated in stages, • Padalarang - Cileunyi: 64,40 Km namely: • Palikanci: 26,30 Km 1. BORR Section 1: Sentul-Kedung Halang (3.85 km) operated since 23 November 2009; • Bogor Outer Ring Road: 11,00 Km Section 2A: Kedung Halang-Kedung Badak (1.95 km) operated since 04 June 2014. • Cengkareng-Kunciran: 14,19 Km 2. Surabaya-Mojokerto Section 1A (2.30 km) operated since 05 September 2011. • Kunciran Serpong: 11,19 Km 3. Semarang-Solo Section 1: Semarang-Ungaran (10.80 km) operated since 17 November 2011; • JORR W2 Utara: 7,70 Km Section 2: Ungaran-Bawen (12.30 km) operated since 04 April 2014. 4. Nusa Dua-Ngurah Rai-Benoa (10.00 km) fully operated since 01 October 2013. 5. JORR W2 North (7.70 km) fully operated since 22 July 2014.

PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report 43 Sustainability 2014 Event Remarks from Remarks from About Company Performance Sustainability Highlights, President President Sustainability Profile Highlights Performance Awards and Commissioner Director Report 2014 Highlights Certification

Concessions Owned by Jasa Marga Toll road sections owned by Jasa Marga has concession period ranging from 35 to 45 years. There are 13 toll road sections that become the operations area of Jasa Marga that has concession of 40 years since 2005 (except JORR Section 5). So until the end of 2014, the concession period owned by the Company is still long.

Until the end of 2014, the status and concession period of Company’s toll road sections are as follows:

Concession of Jasa Marga Toll Road sections (as of December 31, 2014)

Year Date Concession Concession Length No. Section Operator Concession Agreement Period Status (km) Starts Signed (year) 1. Jagorawi Jagorawi 59.00 2005 07 July 2006 40 Operated (Jakarta- Branch since 1978 Bogor-Ciawi) 2. Jakarta- Jakarta- 33.00 2005 07 July 2006 40 Operated Tangerang Tangerang since 1984 Branch 3. Prof. Dr. Ir. Cawang- 14.30 2005 07 July 2006 40 Operated Sedyatmo Tomang- since 1984 Cengkareng 4. Jakarta Inner Cawang- 23.55 2005 07 July 2006 40 Operated Ring Road Tomang- since 1987 (JIRR) Cengkareng Branch 5. Jakarta- Jakarta- 83.00 2005 07 July 2006 40 Operated Cikampek Cikampek since 1988 Branch 6. Padaleunyi Purbaleunyi 64.40 2005 07 July 2006 40 Operated (Padalarang- Branch since 1990 Cileunyi) 7. Cipularang Purbaleunyi 58.50 2005 07 July 2006 40 Operated (Cikampek- Branch since 2003 Purwakarta- Padalarang) 8. Palikanci Palikanci 26.30 2005 07 July 2006 40 Operated (Palimanan- Branch since 1998 Kanci) 9. Semarang Semarang 24.75 2005 07 July 2006 40 Operated Branch since 1983 10. Surabaya- Surabaya- 49.00 2005 07 July 2006 40 Operated Gempol Gempol since 1986 Branch 11. Belmera Belmera 42.70 2005 07 July 2006 40 Operated (Belawan- Branch since 1986 Medan- Tanjung Morawa) 12. Jakarta PT Jalantol 43.10 2005 07 July 2006 40 Operated Outer Lingkarluar since 1991 Ring Road Jakarta (JORR)*) 13. Ulujami- PT Jalantol 5.55 2005 07 July 2006 40 Operated Pondok Aren Lingkarluar since 2001 Jakarta

44 PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report Jasa Marga Ensuring Ensuring Synergy Human Resources Occupational Developing Governance Sustainability Customer to Manage Development Health Community of Economic Satisfaction Environment and Safety Welfare Growth Guarantee

Year Date Concession Concession Length No. Section Operator Concession Agreement Period Status (km) Starts Signed (year) 14. Bogor Outer PT Marga 11.00 2009 29 May 2006 45 Operated Ring Road Sarana Jabar since 2009 (BORR) • Section 1 Sentul Selatan- Kedung Halang (3.85 km): operated since 23 November 2009 • Section 2A Kedung Halang- Kedung Badak (1.95 km): operated since 04 June 2014 15. JORR W2 PT Marga 7.70 2005 07 July 2006 40 Fully operated Utara Lingkar since 22 July Jakarta 2014 16. Cengkareng- PT Marga 14.19 - 02 March 2009 35 Land Kunciran Kunciran not yet acquisition Cengkareng constructed 17. Kunciran- PT Marga 11.19 - 22 September 35 Land Serpong Trans not yet 2008 acquisition Nusantara constructed 18. Semarang- PT Trans 72.64 2010 15 December 2006 45 Operated Solo Marga Jateng since 2011 • Stage I Section 1 Semarang- Ungaran (10.80 km): operated since 12 November 2011 • Stage I Section 2 Ungaran- Bawen (12.30 km): operated since 04 April 2014 19. Surabaya- PT Marga 36,27 2007 06 April 2006 42 Operated Mojokerto Nujyasumo since 2011 Agung • Section 1A Waru- Sepanjang (2.30 km): operated since 05 September 2011

PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report 45 Sustainability 2014 Event Remarks from Remarks from About Company Performance Sustainability Highlights, President President Sustainability Profile Highlights Performance Awards and Commissioner Director Report 2014 Highlights Certification

Year Date Concession Concession Length No. Section Operator Concession Agreement Period Status (km) Starts Signed (year) 20. Gempol- PT 34,15 2013 29 May 2006 45 Land Pasuruan Transmarga acquisition Jatim and Pasuruan construction 21. Gempol- PT Jasa Marga 13,61 2012 19 December 35 Land Pandaan Pandaan Tol 2006 acquisition and construction 22. Nusa Dua- PT Jasa Marga 10,00 2012 16 December 2011 45 Fully operated Ngurah Rai- Bali Tol since 01 Benoa October 2013 23. Medan- PT Jasa Marga 61,70 - 05 January 2015 45 Land Kualanamu- Kualanamu Tol (not yet acquisition Tebing Tinggi constructed) Note: *) Excluding JORR Section S

ORGANIZATION SCALE [G4-9] Jasa Marga is operating in Sumatera, Java and Bali islands, with the support of 4,692 employees. Below is the organization scale of Jasa Marga from the aspect of Human Resources, Finance, and Products and Services.

Jasa Marga Organization Scale [G4-9]

Reporting Period Description 2013 2014 Total employees (person) - 5,075 Operating Revenues (Rp billion) 10,295 9,070.2 Total capital (Rp billion) Assets 28,366 24,753.6 Liabilities 17,499 14,965.8 Equity 10,867 9,787.8 Quantity of Products of Services (KM) North Sumatera Belmera Toll Road 42.7 42.7 Jakarta and its surrounding areas, and West Java Jagorawi Toll Road 59.0 59.0 Jakarta–Cikampek Toll Road 83.0 83.0 Jakarta–Tangerang Toll Road 33.0 33.0 Purbaleunyi Toll Road 122.9 122.9 Ulujami–Pondok Aren Toll Road 5.55 5.55 Jakarta Inner Ring Road Toll Road 23.55 23.55 Prof. Dr. Ir Sedyatmo Toll Road 14.3 14.3 JORR Toll Road 43.0 43.0 Palikanci Toll Road 26.3 26.3 Bogor Outer Ring Road Toll Road 3.8 out of 11.3 3.8 out of 11.3 Cengkareng–Kunciran* Toll Road 14.2 14.2 Kunciran–Serpong * Toll Road 11.2 11.2 JORR W2 North Toll Road 5.7 out of 7.67 7.67 Central Java Semarang Toll Road 24.75 24.75 Semarang–Solo Toll Road 10.8 out of 72.6 10.8 out of 72.6 East Java

46 PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report Jasa Marga Ensuring Ensuring Synergy Human Resources Occupational Developing Governance Sustainability Customer to Manage Development Health Community of Economic Satisfaction Environment and Safety Welfare Growth Guarantee

Reporting Period Description 2013 2014 Surabaya Gempol Toll Road 49.0 49.0 Gempol–Pasuruan* Toll Road 34.15 34.15 Surabaya–Mojokerto Toll Road 2.3 out of 36.3 2.3 out of 36.3 Gempol–Pandaan* Toll Road 13.61 13.61 Bali Nusa Dua–Ngurah Rai–Benoa Toll Road 10.0 10.0 * not yet operated

SIGNIFICANT CHANGES [G4-13] for Jabodetabek area. This toll road is part of Some issues in 2014 have made significant changes Bogor Outer Ring Road toll road and integrated to the Jasa Marga operations and its subsidiaries. with Bogor Outer Ring Road Section 1 toll road Such significant changes are as follows: that has been operating since November 23, 1. Changes on the Board of Commissioners and 2009. Directors based on the resolutions of Annual General 3. JORR W2 North Kebon Jeruk-Ulujami Toll Road Meeting of Shareholders (AGMS) dated March Has Been Fully Operated 18, 2015, concerning the approval of composition Minister of Public Works, Djoko Kirmanto, of the Board of Directors and Commissioners’ officially launched the operations of JORR W2 members as follows: North toll road Ciledug – Ulujami section with length of 2 km. With the operations of this Composition of the Company’s Board of section, then the JORR W2 Toll Road has been Directors’ members fully operated with length of 7.70 km and JORR 1. Mr. Adityawarman as President Director toll road has been integrated. JORR W2 North 2. Mr. Hasanudin as Director Toll Road was officially launched by the Minister 3. Mr. Reynaldi Hermansjah as Independent of Public Works, Djoko Kirmanto, on December Director 27, 2013, and on July 2014, this section has been 4. Mr. Muh Najib Fauzan as Director fully operated with length of 7.70 km. 5. Mr. Christantio Prihambodo as Director 6. Mr. Achiran Pandu Djajanto as Director 4. Tariff Adjustment of Prof. Dr. Sedyatmo Toll Road In accordance with the Decree of Minister of Composition of the Company’s Board of Public Works No. 552/KPTS/M/2014 dated Commissioners’ members September 11, 2014 concerning the toll tariff 1. Mr. Refly Harun as President Commissioner/ adjustment on Prof. Dr. Ir. Sedyatmo Toll Road Independent Commissioner section, therefore since September 19, 2014, at 2. Mr. Akhmad Syakhroza as Commissioner 00:00 or 7 days after the statement of Ministerial 3. Mr. Boediarso Teguh Widodo as Commissioner Decree, the new tariff was enforced in Prof. 4. Mr. Sigit Widyawan as Independent Dr. Sedyatmo (Airport) Toll Road Section with Commissioner adjustment based on inflation by 13.76%. 5. Mr. Taufik Widjojono as Commissioner 6. Mr. Hambra as Commissioner 5. Tariff Adjustment of Jakarta-Cikampek Toll Road In accordance with the Decree of Minister of 2. operations of BORR Section 2A Toll Road Public Works No. 539/KPTS/M/2014 dated (Kedung Halang – Kedung Badak Section) October 8, 2014 concerning the toll tariff Minister of Public Works, Djoko Kirmanto, adjustment on Jakarta-Cikampek Toll Road, officially launched Bogor Outer Ring Road therefore since October 16, 2014, the new tariff (BORR) Section 2A 2A Kedung Halang- Kedung was enforces in the Jakarta-Cikampek Toll Road Badak Toll Road (1.95 km), that was inline with Section, with adjustment based on inflation by the Metropolitan Priority Area (MPA) master plan 12.95%.

PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report 47 Sustainability 2014 Event Remarks from Remarks from About Company Performance Sustainability Highlights, President President Sustainability Profile Highlights Performance Awards and Commissioner Director Report 2014 Highlights Certification

6. establishment of PT Jasamarga Kualanamu Tol (JMKT) PT Jasamarga Kualanamu Tol (JMKT) was established on November 25, 2014, and is a subsidiary of Jasa Marga to conduct business on Medan-Kualanamu-Tebing Tinggi Toll Road including the funding, technical planning, construction, operations and maintenance of Medan-Kualanamu-Tebing Tinggi Toll Road and other businesses in accordance with the prevailing rules and regulations.

Organization Structure PT Jasa Marga (Persero) Tbk.

President Director

ADITYAWARMAN

Operation Director Business Human Capital and Development General Affairs Director Director HASANUDIN ABDUL HADI Hs. MUH NAJIB FAUZAN

Toll Road Business INTERNAL AUDIT Operation Human Capital Development Management Strategy and Policy Division Division Division AGUS PURNOMO TARULI M. HUTAPEA TRULY UNGGUL CARIAWAN NAWANGSASI

Related Business Human Capital CORPORATE Maintenance Division SECRETARY Development Services Division Division AYU WIDYA SUTIRYA WIRIAS DAVID WIJAYATNO KISWARI DEDI KRISNARIAWAN S. SASTRA

Highway and Traffic General Affairs Engineering Division Division CHRISTANTIO IBK YUDARTHA PRIHAMBODO

Rest Area Business Jasa Marga BRANCH OFFICES TOLL ROAD NON TOLL ROAD Unit Development Center Unit SUBSIDIARIES SUBSIDIARIES LEONA ROEDHIANITASARI L. IRWAN PRASETYO

48 PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report Jasa Marga Ensuring Ensuring Synergy Human Resources Occupational Developing Governance Sustainability Customer to Manage Development Health Community of Economic Satisfaction Environment and Safety Welfare Growth Guarantee

COMPOSITION OF SHARE Share Ownership Composition of JSMR (as of December 31, 2014) OWNERSHIP [G4-13] Total Total Shares Composition Description To support the expansion Shareholders (Share) (%) and development of Jasa Government of RI 1 4,760,000,000 70.00 Marga, in 2007, Jasa Public 6,069 2,040,000,000 30.00 Marga released 30% National Investor of its shared to public Indonesian Individual 5,028 72,087,196 by listing on Indonesia 1.06 Stock Exchange with tick Indonesian Institutions 64 112,504,575 1.65 code of JSMR. Below is Insurance 45 157,549,400 2.32 the highlight of share Foundation 119 102,114,200 1.50 ownership composition as Cooperation 5 138,481 0.00 of December 31, 2014. Mutual Fund 171 297,755,903 4.38 Foreign Investor Individual 33 1,094,000 0.02 Foreign Institutions 604 1,296,756,245 19.07 TOTAL 6,070 6,800,000,000 100.00

Finance Director

REYNALDI HERMANSJAH

Corporate Risk and Quality Planning Management Division Division

MOHAMMAD SOFYAN NIXON SITORUS

Finance and Legal Division Accounting Division

ARIEF NURSETIAWAN HELI WINARSO

Community Information Development Technology Unit Division ENKKY SASONO A. W. D. HARI PRATAMA

PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report 49 Sustainability 2014 Event Remarks from Remarks from About Company Performance Sustainability Highlights, President President Sustainability Profile Highlights Performance Awards and Commissioner Director Report 2014 Highlights Certification

Vision, Mission and Corporate Values [G4-56]

The formulation of Vision, Mission, and Corporate Values was conducted by involving all related parties including: the Board of Commissioners, Directors, and employees, and by taking into account the interest of the stakeholders.

Vision, Mission, and Corporate Values have been approved by the Board of Commissioners and Directors through the Decree of the Board of Directors No. 50/KPTS/2013 dated March 1, 2013 concerning the Vision, Mission and Corporate Values.

Vision To become a leading company in the development and operation of toll roads in Indonesia.

The explanation of leading company is as follows: • Having relatively high financial soundness in the industry and providing long-term investment value • Becoming market leader in the industry • Constantly making innovation in order to provide excellent quality of products and services • Having social responsibility to the community and environment • Having qualified Management • Becoming role model in Human Capital management ot other companies and being chosen as the place for having a career by talented people

Mission 1. accelerating Toll Road Development 2. Providing Efficient and Reliable Toll Road 3. enhancing the Efficiency in the Distribution of Goods and Services

The meaning of the Company's mission is that the Company consciously understands its existence in performing its business activities as toll roads developer and operator, the Company has duties to realize the acceleration of toll road development to support economic growth program launched by the Government. In addition, the Company also understands that the existence of toll roads operated by the Company needs to benefit the toll road users requiring efficient and reliable toll roads as well as free-flowing distribution of goods and services.

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Corporate Values

Jasa Marga has set Core Values that serves as guiding principles in behavior and decision- making. Such values were established on the foundation of four main principles jointly recognized and developed comprising of: Trustworthy, Agile, Qualified, and Respectful.

The meaning and explanation of the Corporate Values in details are as follows:

R J S M

TRUSTWORTHY AGILE Jasa Marga is QUALIFIED RESPECTFUL Jasa Marga is AGILE in committed to Jasa Marga is Jasa Marga is providing services to always being QUALIFIED RESPECTFUL to the customers and other TRUSTWORTHY, in performing the stakeholders in stakeholders by being fair, transparent, the duties with creating synergy to concerned and proactive and free from the basis of make achievements. while constantly staying conflict of competency, prudent. interests in consistency, and carrying out its innovation. business activities.

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Jasa Marga Governance

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Meeting activity of Subsidiaries

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Jasa Marga Governance

To become a growing and highly competitive company, Jasa Marga has determined policy and structure of corporate governance by taking into account the GCG principles in accordance with the prevailing rules and regulations.

Implementation of excellent and consistent Good GCG development of the Company complied Corporate Governance is necessary in achieving and adopted towards changes on the rules sustainable performance growth. The GCG and regulations as best practices of corporate implementation can improve the performance of governance. In implementing GCG principles, Jasa Marga, that enables the optimization of the Jasa Marge refers to the Regulation of Minister of share values in the long-term, by taking into account SOEs No. PER-01/MBU/2011 dated August 1, 2011 the entire stakeholders. concerning the implementation of Good Corporate Governance in SOEs, with the latest amendment Jasa Marga understands the GCG implementation in Regulation of Minister of SOEs No. PER-09/ with wide perspective as a supporting performance MBU/2012 stipulated that “SOEs shall operate system and fulfillment of compliance aspect by upholding the GCG principles comprising towards some rules and regulations. Furthermore, it of transparency, accountability, responsibility, is an awareness that is implemented into culture in independency, and fairness”. ethical business.

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Jasa Marga strives to implement GCG, both by referring to the formal rules that become the independently or supported by independent party in foundation for the Company in implementing GCG. achieving sustainable corporate governance. Such commitment is stated in the policies/internal Policy and Structure of guidance concerning the GCG implementation through the decision of the Board of Directors, [G4-34] Governance among others are: Code of Corporate Governance, To become a growing and highly competitive Whistleblowing System Manual, Gratification company, Jasa Marga has determined policy and Handling Manual, Board Manual of the Board of structure of corporate governance by taking into Commissioners and Directors, Division of Duties and account the GCG principles in accordance with the Authorities of the Board of Directors, the Board of prevailing rules and regulations. Jasa Marga has Directors’ meeting manual and other policies. full commitment and consistently implement GCG

Diagram Hierarchy of the Company's GCG Policy

Article of Association

Board Manual

Good Corporate Governance Guidelines

Code of Guidelines for Guidelines for Handling Guidelines for Conduct Conflict of Interest Gratification Whistleblowing System

Standard Operating Other Policies Procedures

To support the effectiveness of GCG implementation, the Company has continuously implemented socialization and internalization of GCG policies to entire Jasa Marga employees and stakeholders. This was taken to ensure that all Jasa Marga employees are able to implement GCG as culture in daily practices.

By referring to Law No. 40 year 2007 concerning Limited Liability Company, Article 1, the governance structure of Jasa Marga has determined the main Corporate Organ consists of General Meeting of Shareholders, Board of Commissioners and Directors and Supporting Organ consists of Committees under the Board of Commissioners. So the governance structure of Jasa Marga comprising of:

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• General Meeting of Shareholders, to be • Board of Directors is the corporate organ called as GMS is the highest corporate organ who is authorized and fully responsible on the in the company that has the authority that Company’s management for the sake of the is not granted to the Board of Directors or Company’s interest, in accordance with the Commissioners within the limit stipulated in the Company’s goals and objectives and represent prevailing rules and regulations and/or Articles the Company, both within or outside the court of Association. in accordance with the prevailing Articles of • Board of Commissioners is corporate organ Association. that is collectively responsible for performing supervision and giving advice to the Board of The complete Governance Structure of Jasa Marga Directors, as well as ensuring the compliance specifically in implementing GCG principles are as towards all rules and regulations, and supervising follows: the GCG implementation in the Company.

Governance Structure

GMS

Audit Committee

Board of Directors Commissioners Business Risk & Investment Committee

Division Corporate Legal Risk and Quality Internal Audit Secretary Division Management

GCG Risk Compliance Management

Investor Relations

Position of Gms, Board of Commissioners and Directors General Meeting of Shareholders (GMS) General Meeting of Shareholders (GMS) is the highest corporate organ in the GCG structure, which ahs authorities that are not granted to the Board of Commissioners or Directors within the limit stipulated in the Articles of Association and prevailing rules and regulations. Such authorities including the responsibility statement appeal of the Board of Commissioners and Directors concerning the Company’s management, amend the Articles of Association, appoint and dismiss the Directors and members of the Board of

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Commissioners, determine the division of duties and chairman gave opportunities to the Shareholders authorities on management among the Directors or proxies to propose question/feedback and/ and so on. or input for each Meeting Agenda to be answered or responded by the meeting chairman or who GMS in the Company is: was appointed by the meeting chairman. After all • Annual General Meeting of Shareholders that questions answered and responded, voting was is held annually latest by 6 months after the conducted and only Shareholders or proxies who financial year ends. have rights to vote. Each share provided rights to • Extraordinary General Meeting of Shareholders its holders to vote. The Company appointed Notary, is General Meeting of Shareholders that is held Ir. Nanette Cahyanie Handari Adi Warsito, SH. as whenever deemed necessary. independent party who validated the votes and prepares the Minutes of Meeting. In 2014, Jasa Marga held 1 (one) time GMS, which was Annual GMS on March 11, 2014 in Ballroom The Board of Commissioners Dharmawangsa Jakarta, at Jl. Brawijaya Raya No. 26, The Board of Commissioners is a corporate organ Kebayoran Baru, Jakarta 12160. The Annual GMS has who is responsible collectively to supervise and gone through the preparation and implementation provide advice to the Board of Directors and process in accordance with the Law No, 40 year ensure the compliance towards all rules and 2007 concerning Limited Liability Company Articles regulation, and supervise the GCG implementation 81, 82, and 83 and Decree of Bapepam-LK Chairman in all levels or organization levels. The Board of No. Kep-60/PM/1996 concerning GMS Planning and Commissioners in primus inter pares is chaires and Implementation. The planning and implementation coordinated by the President Commissioner. Each process of Annual GMS has been stated in the member of the Board of Commissioners has same Company’s letter that has been submitted to position in implementing its duties. The members Bapepam-LK and the advertisement of Notification, of the Board of Commissioners are appointed and Invitation and Announcement of Annual GMS dismissed by GMS. Resolutions each on 2 (two) Indonesian newspapers published nation-wide. The Board of Commissioners’ responsibility to GMS is part of the accountability, supervision Annual GMS is attended by the members of the and counseling on the Company’s management Board of Commissioners, (one of the members is conducted by the Board of Directors in the Audit Committee Chairman) and the Board of implementing Good Corporate Governance Directors as well as the Shareholders of Series A principles. Dwiwarna Share and Series B Shareholders and/or proxies with attendance quorum of 79.909% from In implementing its duties, the Board of all shareholders who owned voting rights and Commissioners is referring to the Board Manual for have fulfilled the provisions of Company’s Articles the Board of Commissioners’ members of PT Jasa of Association. GMS was also attended by Public Marga (PErsero) Tbk. that has been set through Accountant Firm who has audited the Financial the Decision Letter of the Board of Commissioners Report of the Company and its Subsidiaries as No. Kep- 0205/XII/2013 dated December 30, 2013 well as the Financial Report of Partnership and concerning the revision of Board Manual for the Environmental Development Program for the Board of Commissioners’ members of PT Jasa Marga year 2013. (Persero) Tbk. The Board Manual consists of: 1. Introduction In accordance with the Decision of the Company’s explaining the backgrounds, goals and objectives Board of Commissioners, Annual GMS (meeting) as well as understanding from the matters stated was chaired by the President Director. The meeting in the Board Manual.

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2. board of Commissioners In accordance with the duties division of the Board explaining the main duties, responsibilities and of Commissioners’ members as stipulated in the authorities of the Board of Commissioners, Decision Letter of the Board of Commissioners of provisions of structure, requirements, and PT Jasa Marga (Persero) Tbk. No. Kep- 106a/V/2014 terms of office of the Board of Commissioners, dated May 16, 2014, the duties of the Board of requirement of Independent Commissioner, Commissioners were divided into 6 (six) fields of function, meeting, reporting and activities budget duties as follows: of the Board of Commissioners. 1. Policy and Corporate Development Strategy 3. board of Directors 2. Investment explaining the Duties of the oard of Directors, 3. Financial the Responsibilities of the Board of Directors, 4. road Technical Profession Ethics of the Board of Directors, 5. road Traffic Services Members of the Board of Directors, Statement of 6. organization and Human Resources Development the Board of Directors, Introduction and Capability Improvement Program, Board of Directors’ Composition and Meeting Attendance of Meeting, Board of Directors’ Rights, Performance the Board of Commissioners Evaluation of the Board of Directors, Corporate Until the end of December 31, 2014, the composition Secretary, and Internal Controlling System. of the Board of Commissioners of Jasa Marga was 4. activities Among the Corporate Organ 6 (six) people, with 2 (two) people as Independent explaining the activities implemented concerning Commissioner and 4 (four) people as Commissioner the working relationship of the Board of who represent Controlling Shareholders (Government Commissioners and Directors including the of Republic of Indonesia). Meanwhile in 2014, the joint meeting of the Board of Commissioners – Board of Commissioners has conducted 15 (fifteen) Directors and General Meetingof Shareholders. internal meeting of the Board of Commissioners.

Composition and Meeting Attendance of the Board of Commissioners in 2014

Legal Basis of Shareholders Total Attended Name Position Appointment Representative Meeting (15 times) Agoes Widjanarko President Resolutions of The State of 14 Commissioner Extraordinary GMS on Republic January 30, 2012 of Indonesia Mayjen. (Purn.) Independent Resolutions of Independent 15 Samsoedin Commissioner Extraordinary GMS on January 30, 2012 Irjen. Polisi (Purn.) Independent Resolutions of the Independent 15 Michael Dendron Commissioner Extraordinary GMS on Primanto January 30, 2012 Ibnu Purna Commissioner Resolutions of The State of 14 Extraordinary GMS on Republic January 30, 2012 of Indonesia

Akhmad Syakhroza Commissioner Resolutions of the The State of 13 Extraordinary GMS on Republic January 30, 2012 of Indonesia Boedoarso Teguh Commissioner Resolutions of Annual GMS The State of 9 Widodo on March 11, 2013 Republic of Indonesia

Notes: • Absenteeism of the Board of Commissioners’ members in the meeting was caused by on leave duty of the members outside the town or attended important event/meeting that can not be represented. • Differences of Total Minimum Meeting was caused by the differences in appointment timing as the members of the Board of Commissioners.

To support the implementation of supervisory duties, the Board of Commissioners is assisted by the Committees established and who are responsible to the Board of Commissioners. The Committees are the Audit Committee and Investment and Business Risk Committees.

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Changes on the Board of Commissioners and Directors Based on the resolutions of Annual General Meeting of Shareholders (AGMS) dated March 18, 2015, concerning the approval of composition of the Board of Commissioners’ members as follows:

Composition of the Company’s Board of Commissioners’ members 1. Mr. Refly Harun As President Commissioner/Independent Commissioner 2. Mr. Akhmad Syakhroza As Commissioner 3. Mr. Boediarso Teguh Widodo as Commissioner 4. Mr. Sigit Widyawan As Independent Commissioner 5. Mr. Taufik Widjojono As Commissioner 6. Mr. Hambra As Commissioner

Audit Committee Company’s activities in accordance with The Company’s Audit Committee was established prevailing standard operating procedures. through the Decision of the Board of Commissioners 6. To give opinions to the Board of Commissioners that consists of 1 (one) Committee Chairman as well regarding the report or other matters submitted as member and 2 (two) Committees’ members. In by the Board of Directors to the Board of implementing its duties, the Audit Committee is Commissioners. responsible to the Board of Commissioners. 7. To identify issues requiring attention from the Board of Commissioners, and undertake other The Audit Committee responsibility to the Board duties related to the duties of the Board of of Commissioners is part of the supervisory Commissioners. accountability commitment on the company management in implementing the GCG principles. INVESTMENT AND BUSINESS RISK COMMITTEE The duties and responsibilities of the Audit Investment and Business Risk Committee of the Committee are stated in the Audit Committee Company was established by the decision of the Charter that was legalized in the Decision of the Board of Commissioners that consists of 2 (one) Board of Commissioners No. Kep-0038/III/2013 Committee Chairman as well as member and 2 dated March 11, 2013 concerning the Changes (two) members of the Committee’s members. on the Audit Committee Charter PT Jasa Marga In undertaking its duties, the Investment and (Persero) Tbk. Business Risk Committee is responsible to the Board of Commissioners. Based on the Audit Committee Charter, the duties and responsibilities of Audit Committee is to help In undertaking its duties and responsibilities, the Board of Commissioners: the Investment and Business Risk Committee is 1. To ensure the effectiveness of internal control referring to the Investment and Business Risk system and effectivity of duties implementation Committee Charter. The Duties and responsibilities of external and internal auditor. of Investment and Business Risk Committee are to 2. To assess the activity implementation and the assist the Board of Commissioners in: audit result that will be carried out by the Internal 1. evaluating short-term and long-term investment Control Unit or external auditor. plan stated in the Company’s RJPP and RKAP 3. To give recommendation concerning the and submitting the evaluation to the Board of improvement on the management control system Commissioners as iputs in arranging and or and its implementation. reviewing RJPP, as well as in discussing the 4. To ensure the existence of excellent review annual RKAP proposed by the Board of Directors. proceures of all information disclosed by the 2. evaluating the implementation of investment, Company, including periodic financial statement existing investment policies and strategies along submitted to the shareholders. with risk management and giving recommendation 5. To ensure the compliance of procedures in order to review and decide new investment of excellent review on the carrying out the policies, strategies and business risks.

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3. Preparing documents, information, material, The Board of Directors is referring to the work analysis and reviewing in relation to investment guidelines for Board of Commissioners and Directors implementation and risk management, in order (Board Manual). Board Manual comprises guidelines to minimize and or avoid the Company from cost on work procedures for the Board of Commissioners overrun and improve efficiency and effectiveness and Directors and explanation on stages of activities in toll road and non-toll road investment. in manners that are well-structures, systematic, 4. giving feedbacks and reviewing on feasibility and easily understood, applicable consistently, and risks of toll road and non-toll road investment, serving as reference for the Board of Commissioners in relation to traffic volume projection, land and Directors in carrying out each of their duties. acquisition, project financing and appropriate Board Manual comprises of: use of technology and innovation as well as value 1. Introduction engineering. Contains description on background, aims and 5. Preparing annual work program of Investment purposes, as well as definition of items stated in and Business Risk Committee to get approval Board Manual. from the Board of Commissioners and creating 2. board of Commissioners periodic report to be submitted to and evaluated Contains description of the Board of by the Board of Commissioners. Commissioners’ main duties, responsibilities 6. Carrying out other tasks assigned by the Board and authorities, composition provision, of Commissioners. requirements, and term of office of the Board 7. reporting to the Board of Commissioners in the of Commissioners, Board of Commissioners carrying out of the duties of Investment and independency requirements, functions, meetings, Business Risk Committee. reporting and activities budgeting of the Board of Commissioners. Board of Directors 3. board of Directors The Board of Directors is a corporate organ that is Contains description on the Board of in charge and responsible collectively to manage Directors’ duties, obligations, professional the Company and implement GCG to all levels ethics, authorities, membership, requirements, of organization. In undertaking its duties, the introductory program and capability Board of Directors is responsible to the GMS. The improvement, meetings, rights, performance responsibility of the Board of Directors to GMS is evaluation, Corporate Secretary, Internal Control part of the company’s management accountability System. commitment in accordance with the GCG principles. 4. activities Inter Organs of the Company The members of the Board of Directors are Contains description on the activities that appointed and dismissed by the General Meeting of need to be carried out in view of work relations Shareholders (GMS), in which GMS shall be attended between the Board of Commissioners and by the Shareholders of Dwiwarna Series A and GMS Directors, including the Board of Commissioners resolutions are approved by the Shareholders of – Directors’ joint meetings and general meeting Dwiwarna Series A. of shareholders.

In undertaking its duties and responsibilities, the To be inline with the Company’s vision and mission, Board of Directors is referring tp the Articles of based on the Decision of the Board of Directors Association ot the internal provisions and prevailing No. 60/KPTS/2009 dated March 30, 2009, with rules and regulations. The main duties of the Board the last amendment of the Decision of the Board of of Directors are to: Directors No. 199/KPTS/2011 dated December 30, • Lead and manage the Company in accordance 2011, the duties and responsibilities of each member with the Company’s goals and objectives of the Board of Directors are: and always strives to improve the Company’s 1. President Director effieciency and effectiveness. 2. operations Director • Control, mantain and manage the Company’s 3. business Development Director assets. 4. Finance Director 5. Human Resources and General Affairs Director

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Composition and Meeting Attendance of the Board of Directors All members of the Company’s Board of Directors have fulfilled the prevailing formal and material requirements. The formal requirement is general and in accordance with the prevailing rules and regulations. The composition of the Company’s Board of Directors consists of 5 (five) people, 1 (one) President Director and 4 (four) Directors.

Tottal Attended Name Position Basis of Appointment Meetings (48 times) Resolution of Extraordinary Adityawarman President Director 47 GMS on 30 January 2012 Resolution of Extraordinary Hasanudin Operation Director 45 GMS on 30 January 2012 Business Development Resolution of Extraordinary Abdul Hadi Hs. 44 Director GMS on 30 January 2012 Resolution of Extraordinary Reynaldi Hermansjah Finance Director 43 GMS on 30 January 2012 Human Capital and General Resolution of Extraordinary Muh Najib Fauzan 43 Affairs Director GMS on 30 January 2012

Notes: Absenteeism of the Board of Directors’ members in the meeting was caused by on leave duty of the members outside the town or attended important event/meeting that can not be represented.

Appointment of Independent Director and addition Anti Corruption Policy and of the Director of Risk and Compliance in 2015. Gratification Handling Program [G4-14] Appointment of Independent Jasa Marga has high commitment in preventing Director and Addition of and eradicating corruption, this is as part of the Nomenclature Directorate awareness that corruption becomes the starting The resolutions of Annual General Meeting of point of business failure disaster for corporate. Shareholders (AGMS) dated March 18, 2015, Commitment on the corruption prevention and concerning the dismissal/appointment of the Board eradiction is stated in the anti corruption policy and of Directors’ members, addition of nomenclature gratification handling program, as in the Decision of of the Board of Directors’ structure and members the Board of Directors of PT Jasa Marga (Persero) determination of the Company’s Board of Directors. Tbk. No. 183/KPTS/2014 dated October 22, 2014 Based on that decision, GMS has appointed 1 concerning the gratification handling program (one) member of Independent Director, add the of PT Jasa Marga (Persero) Tbk. To support the nomenclature of Risk and Compliance in the effectiveness of the commitment implementation on structure of the Board of Directors and appoint the anti corruption and gratification handling program, new members of the Company’s Board of Directors. the Company has implemented the gratification handling program together with the Corruption Composition of the Company’s Board of Directors Eradication Commission (KPK). [G4-DMA] Members 1. Mr. Adityawarman as President Director Sosialization concerning with the Company’s policy 2. Mr. Hasanudin as Director on the corruption prevention and management 3. Mr. Reynaldi Hermansjah as Independent Director is implemented and improved continuously to 4. Mr. Muh Najib Fauzan as Director all employees of Jasa Marga through various 5. Mr. Christantio Prihambodo as Director channels or internal media among others are: 6. Mr. Achiran Pandu Djajanto as Director special training concerning sosialization of Code of Conduct and Gratification handling program Policy, sosialization of LHKPN reporting policy, socialization of Whistleblowing System Guidance, general internal training concerning the employees competency development, internal communication

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Commission) dated October 1, 2014 and Recharging of Gratification Control Unit Institution in Jakarta. The benefits of this application for government institutions (SOEs) and government employees (PNS) to prevent gratification. Meanwhile the benefits for public is as part of the education so they will not implement any form of gratification directly or request directly.

Some initiatives have been conducted by the Company concerning the anti corruption policy and gratification handling program targeting the internal and external parties in 2014, among others are: 1. signation of Integrity Pact by all Company’s employees that is renewed annually 2. socialization through corporate internal media (Berita Jalan Tol and Info Tol) 3. state Official Property Report (LHKPN) reporting uo to AVP level in 2014 4. gratification report to KPK and collaboration program 5. gratification report to KPK and collaboration of gratification handling program with KPK, media such as magazine (Berita Jalan Tol and Info by conducting training of trainers Gratification Tol), intranet. Meanwhile the socialization of anti Handling Program in 2014 corruption policy and gratification handling program 6. establishment of Jasa Marga Gratification Control to external parties (stakeholders) is conducted Unit in Compliance Department section GCG through the Company’s website www.jasamarga. 7. advertisement of Gratification prohibitions in com, advertisement of gratification prohibition in mass media and website mass media, mail delivery concerning the prohibition 8. Changes on the Decision of the Board of in giving any gifts (gratification). Directors concerning the Gratification Handling Program Guideline Number 183/KPTS/2014 As part of the support to the prevention and dated October 22, 2014 which then printed in prosecution of corruption, President Director of Jasa pocket books and distributed to all employees Marga, Adityawarman, participated in the application of Jasa Marga. launch of “GRATis” KPK (Corruption Eradication

Activities Schedule of Jasa Marga Gratification Handling Program Implementation [G4-SO4]

Pelaksanaan No. Main Activities Detailed Activities Estimated Time Venue PIC 1. Statement of Commitment to • Preparing Draft of Commitment 11 July 2013 Jasa Marga Head Corporate Implement • Signing of Commitment Office Secretary Gratification Control Program 2. Appointment of Function/Unit in Review of Jasa Marga Directors Decision No. 187/ July-September Jasa Marga Head Corporate charge of Gratification Control KPTS/2011 on Guidelines for Gratification Control, 2014 Office Secretary (Gratification Control Unit) especially to confirm that Corporate Secretary as the Gratification Control Unit which handles the controlling of gratification (receive and submit Gratification report toK PK)

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Pelaksanaan No. Main Activities Detailed Activities Estimated Time Venue PIC 3. Strengthening Terms Conducting Technical Workshop to draft 28-29 October Meeting Room of Corporate Organs Ruling on Gratification Control and Mechanism for 2013 Jagorawi Branch Secretary processing Gratification Report (20 people). Dissemination/Focus Group Discussion (FGD) of Draft Regulation on Gratification Control and Mechanism for Preparing the Gratification Report. Approving the Review Result about rules on September 2014 Jasa Marga Head Corporate Controlling Gratification and Function/Unit which Office Secteraty Manages Gratification Control Declaring Code of Ethics Already existed, last revised in 2013 Position Analysis To be prepared by Gratification Control Program Team Preparing other related rules: i. Ruling on Whistleblowing System (Optional) Already existed Jasa Marga Head Corporate since December Office Secretary 2011 and last revised in January 2013 ii. Ethic Commission to Process breaking of Human Capital Services Division Human Capital Services Division Ethics by Employees and Management HR (Agent of Appointment of Candidates for Training of Trainers Change) (ToT) Participants on Gratification i. Submission of List of ToT Participants October 2014 Jasa Marga Head JMDC and ii. Determining Candidates for ToT Participants Office Corporate ToT on Gratification (20 people) October- Bandung Secretary November 2014 4. Socialization/ Dissemination Online Dissemination December 2014 of Gratification and Terms for Internal and External Socialization December Jasa Marga Corporate Gratification Control. 2014-March 2015 Head Office, Secretary Branch Offices, Subsidiaries and External (GMS) 5. Monitoring and Evaluation. Evaluation on the Implementation of Gratification Q2, 2015 Control Program/PPG (Review of System/Rules/ Observation)

Whistleblowing System In line with the Company’s commitment to To ensure the effectiveness of such system, the prevention of corruption and gratification the management of Whistleblowing System is handling, Jasa Marga has provided a platform implemented together with the independent and or media to prevent actions of Jasa Marga experienced external parties. The Whistleblowing employees indicated as part of the violation management team evaluate on the Whistleblowing to the internal rules and prevailing rules and System management in the Company. This regulations. The reporting media on the violation is implemented to provide guarantee on actions is stated in the decision of the Board of confidentiality and security of the reported on the Directors of PT Jasa Marga (Persero) Tbk. No. 09/ misconducts allegation. With the Whistleblowing KPTS/2013 dated January 16, 2013 concerning system policy, the Company also provides the Whistleblowing System Guideline of PT Jasa space to all parties, both internal and external Marga (Persero) Tbk. (stakeholders), to contribute in preventing and decreasing the violations that harms the interests Whistleblowing System is a system that manages of all parties. reporting/disclosures of illegal conducts, and unethical/improper conducts in confidential, anonymous and independent manners to be used in optimizing the roles of Jasa Marga employees and other parties in revealing misconducts that occur in the Company.

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Mechanism of Receiving Reports in Whistleblowing System

Deloitte contact center responds when whistleblower asks the follow up status of the report

Means of Whistleblowing

Deloitte Report will be forensic published in Deloitte Deloitte Deloitte Investigator e-Room and WBS Contact Center analyst asks analyst will reviews call email notice Management responds to relevant give unique log, make will be sent to Team will follow whistleblower information reference investigation all members up and respond based on to number to report and of Jasa to the case to reference whistleblower whistleblower follow up Marga WBS Deloitte number recommen- Management dations Team

Risk Management Implementation The Company’s business concerning the toll road Since 2007, Jasa Marga started the implementation business management, is a big investment with of Risk Management system with the basis of AS/ long term return and has high uncertainty during NZS 4360:1999 standard, which was decided its development and operations period. With such by Decision of the Board of Directors No. 139/ business characteristics, the Company realizes the KPTS/2007 on Risk Management Manual. With toll road management business is inseparable with the issuance of ISO 31000:2009 on October 31, the risks that migh rise, so it needs professional risk 2009, Jasa Marga conducted management review management. The main function of risk management to amend the guidelines on implementation of risk is to identify all key risks, measure these risks and management with the new standard of Enterprise manage the risk management system. Risk Management (ERM) orientation by issuing the Decision of the Boiard of Directors No. 129.2/ Jasa Marga defined risk as the possibility of corporate KPTS/2010 concerning the Risk Management Policy loss, that was caused by the internal or external and Risk Management Manual in PT Jasa Marga factors that negatively affect the achievement of the (Persero) Tbk. corporate goals. The Corporate goals in managing the financial risk is to achieve proper balance between To support the effectiveness of risk management risk and return and minimize the effects caused by implementation, Jasa Marga has prepares some the decreasing performance of the Company both procedures including: a) Risk Management from the financial and operations. In accordance with Procedure (PK/PR/01-BMMR); b) RPR and PPR its business characteristics, Jasa Marga takes much Preparation Procedure (PK/PR/02-BMMR); attention to the main risks that are divided into four c) Monitoring Risk Mitigation Implementation risks including: 1.) Development Risk; 2.) Operations Procedure (PK/PR/03-BMMR); d) Corporate Risk Risk; 3.) Financial Risk; 4.) Human Resources and Profile Preparation Procedure (PK/PR/04-BMMR); Other Risks.

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e) Documentation and Reporting Procedure (PK/ Code of Conduct of the Company is applied to all PR/05-BMMR); f) Risk Event Evaluation Procedure Jasa MArga employees, subsidiaries and affiliated (PK/PR/06-BMMR); and g) Risk Registrar under the control, shareholders (investor) and all Preparation Procedure (PK/PR/07-BMMR). stakeholders or business partners who conduct business transations with Jasa Marga and also serves Initiatives to guarantee the risk management as the basis in the decision making process. that is systematic, integrated and with high quality, Jasa Marga has prepared roadmap of risk Socialization of Code of Conduct is carried out management system development as guideline for through some structured ways, including: organizing all organization level and ensure the achievement of special training program, seminar and signation long term development goal. In accordance with the of integrity pact to comply to articles of Code implementation of risk management and prudence of Conduct by all employees of Jasa Marga that principles, Jasa Marga did not charged of monetary is renewed every beginning of the year, some or non-monetary fines in 2014. G[ 4-SO8] media owned by the Company, including through information technology that can be accessed by all Code of Ethics and Corporate employees easily every time. Sosialization Medias of Code of Conduct are through: Website, pocket [G4-56] Culture book, banner, bulletin, commitment statement that Code of Ethics is signed together, duplicated and framed as well as Good relationship with stakeholders and distributed to all Work Units and Branches, Jingle improvement in values of Shareholders in the and Advertisement in the newspaper. long term can only be achieved through business integrity in every business activities of the Company. In 2014, every employees of Jasa Marga has signed Therefore, Jasa Marga has stipulated some policies the integrity pact as part of the commitment on concerning the corporate ethics in interacting GCG implementation in the Company’s operations. and running the business. Jasa Marga strives to The percentage of commitment of code of conduct implement the best ethics standard in undertaking by the employees of Jasa Marga is 100%. its business activities in accordance with its Vision, Mission, and culture owned through the Corporate Culture implementation of Business Ethics and Work Ethics. Corporate Culture is values and philosophy that has been agree and believed by all employees The Company has Code of Conduct that comprises and management of the Company as a basis and of Business Ethics and Work Ethics since 2010 reference for Jasa MArga in achieving the goals of as basis in undertaking duties for all levels of Company’s establishment. The Company developed Management and Jasa Marga employees. As part of corporate culture through implementation of Jasa the Company’s commitment in improving the quality Marga Values that is conducted in planned so that all og GCG implementation, Jasa Marga has revised and employees can actualize behavior that is based on renew the Code of Conduct, through the decision the values as follows: of the Board of Directors No. 175/KPTS/2013 dated December 17, 2013, concerning Code of Conduct.

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JUJUR (TRUSTWORTHY) Jasa Marga is committed to always being TRUSTWORTHY, fair, transparent and free from conflict J of interests in carrying out its business activities. SIGAP (AGILE) Jasa Marga is AGILE in providing services to the customers and other stakeholders by being S concerned and proactive while constantly staying prudent. MUMPUNI (QUALIFIED) Jasa Marga is QUALIFIED in performing the duties with the basis of competency, consistency M and innovation.

RESPEK (RESPECTFUL) R Jasa Marga is RESPECTFUL to the stakeholders in creating synergy to make achievements.

Distribution and socialization of values are Stakeholders Management conducted through internal and external website of influenced by the achievement of the Company’s the Company, slideshow of values in every training goals, as well as has different expectation and or meeting, banner display in strategic places in interest in every operations area. The Company the Company. Initiatives have been taken by the hopes with interaction and positive relationship Company concerning with the socialization of can provide mutual benefit between the Company Corporate Values (Corporate Culture) in 2014 as and stakeholders to achieve business success in follows: long-term. 1. obligation to state Corporate Values in the procurement document in the Company aand Therefore, Jasa Marga then prepared the relationship when conducting aanwijzing (briefing meeting). and engagement framework of stakeholders in the 2. evaluate the Corporate Vision, Mission, and management of the Company. The Company strives Values to all work units and branches, Evaluation to identify various stakeholders and group it into 8 covers the evaluation of understanding towards groups of stakeholders, as follows: Vision, Mission and Values as well as evaluation 1. Shareholders, towards socialization effectiveness of Vision, 2. Creditor, Mission and Values. 3. government, both Central or Region including, 3. explanation of Vision, Mission and Values up to 4. Institution within, operations level by consultant. 5. Employees, 4. socialization and survey of understanding and 6. Customers/Toll Road Users, socialization effectiveness through Decision 7. Competitors, of the Board of Directors No. 173/KPTS/2014 8. business Partners/Suppliers/Contractors, dated October 15, 2014 concerning the Code of 9. Public Community and institutions, Socialization and Evaluation of Corporate Vision, 10. Mass Media. Mission and Values on October 2014. Stakeholders identification analysis is conducted through focus group discussion (FGD) method, in depth interview, observation and literature study to analyze strength, influence, legitimate, issues and depth of interest level of stakeholders towards the Company. The analysis unit used is the institution or group who has been defined as stakeholders.

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Jasa Marga continuously assist the relationship with stakeholders, including the internal and external of the Company. It is conducted to ensure that the Company can acknowledge the expectation and latest interest of the stakeholders, then strive to make it in line with its work programs according to the dynamics occurred.

From several interaction activities with stakeholders, Jasa Marga then realized the relationship and assistance pattern with each stakeholders in accordance with relevant topics. The assistance pattern is adjusted with each characteristic of stakeholders, and also with the assistance frequency. The relationship and assistance pattern is provided in the table below.

Relationship and Assistance with Stakeholders [G4-24, G425, G4-26, G4-27]

Identification Stakeholders Main Topic Stakeholders Expectation Interaction Approach Base

Customers Dependency • Customer 1. Maintained toll road • Information availability complain quality. of traffic condition to management 2. Equipment and sagety customers. • Customer service for toll road users. • Realization of center 3. Fast response when maintenance and accident occured. improvement program 4. Services exceed of roads regularly. expectation. • Services access facility to customers and • Organize customers gathering activities.

Shareholders Responsibility, • Responsibility of 1. Maintain and improve • GMS and Investors Influence the Company’s the investment value • Investor road shows performance through Company’s • Investor gathering during one year performance • Project visit • Report of improvement. • Public Expose operations, 2. Fulfillment of the financial shareholders rights, and social both majority or performances of minority. the Company. 3. Information disclosure for substantial matters and clarity on business development direction. 4. respecting the rights of shareholers in accordance with the prevailing Laws, Rules, Articles of Association.

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Identification Stakeholders Main Topic Stakeholders Expectation Interaction Approach Base

Government/ Influence • Payment of 1. Maintain good and • Bipartit meeting of Regulator the Company’s constructive relationship central or regional obligations to with regulator. government. the State. 2. Jasa Marga and all • House of • Discussion and employees are obedient Representative input concerning and comply with the Hearings program and prevailing laws and • Project visit to project activity plan of regulations. site. the Company. 3. Positive contribution • Fulfillment of to the surrounding obligation on tax community. payment, retribution 4. Fulfillment of LKHPN and other non tax requirements. state Revenue (PNPB) 5. Fulfillment of regular in accordance with the report to regulator prevailing rules and including to BPJT regulations. (Toll Road Regulator Authority).

Employees Dependency • Work agreement 1. Clarity of rights and • Preparation and between the obligations. establishment of Company’s 2. Distribution of Collective Bargaining management remuneration package Agreement (PKB) with employees in accordance with through dialogue with • Employment performance. Employee Union.. matters 3. Equality in career • Regular meeting settlement development and between employees • Opportunity for remuneration. and the Company’s competency 4. Guarantee of security, management as direct improvement health, and occupational dialogue forum. and career safety. • Development 5. Convenience of work of employees environment. competency and preparing the professional management/ Company’s leader. • Imposing HR management system and performance based incentive system.

Business Influence • Procurement 1. Fair and transparent • Organize open and Partner/ of product procurement process. transparen project Contractor and services in 2. Objective selection contract tender. (Vendor) accordance with and evaluation in • Supervision and the Company’s determining the winner evaluation of vendor needs. of construction services/ project contract • Business partner goods supply contract. implementation performance. 3. Accurate but through regular simple procurement assessment. administration procedure. 4. On time settlement of products and services payment. 5. Mutual benefit relatioship /Mutually beneficial growth.

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Identification Stakeholders Main Topic Stakeholders Expectation Interaction Approach Base

Creditor Responsibility • Information 1. Clarity of the • Site Visit, direct visit availability and development plan. of creditor to the responsiility of 2. On time payment. construction project the construction 3. Transparency of site or facilities project operational and financial managed by Jasa implementation/ condition. Marga. facilities 4. Information update • Non-deal roadshow, managed by on new corridors the Company’s Jasa Marga. development condition. management visit to meeting forum with fund managers from existim creditors or potential investors. • Conference- call, dialogue or communication via phone/multimedia with investors in accordance with needs.

Community/ Responsibility, • Public economic 1. Mantain good and • Organize public Non Profit Influence empowerment. harmonious relationship. and social mapping Organization • Improvement of 2. Mnimize the impact consultancy. public’s quality on road corridors • Socialization of CSR of life. development towards plan and coordination environment. of the Company’s CSR 3. Participate in implementation. environmental preservation activities. 4. Implement revegetation and reforestation program. 5. Positive contribution towards the economic, social and surrounding community.

Mass Media Influence • Constructive 1. Accuracy of the news • Press release, relationship that object. delivering news give mutual 2. The latest and on time concerning the benefit between information and news achievement or the needs of delivery. realization of work news source with 3. Transparency of plan set to the mass Jasa Marga as operational and financial media without face to the party who condition. face interaction. needs media. • Media Visit, Media Gathering & Press conference, direct news delivery, and question and answer session.

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Identification Stakeholders Main Topic Stakeholders Expectation Interaction Approach Base

Competitor Influence Soundness 1. Fairness in • Joint Forum. competition in implementation of toll • Involvement in concession tender road corridors tender association. process. process. 2. Free flow traffic on toll road that is integrated with other party’s toll road.

Supply Chain [G4-12] Jasa Marga defines supply chain as business regulation. However, Jasa Marga keeps ensuring partner who support the Company in providing and guarantee that each supplier is treated fairly supply chain for business sustainability. The and transparently. [G4-LA13] management of supply chain is a material issue for the Company, since there is a significant Jasa Marga has commitment to serve customers relationship between the image and reputation of and other stakeholders beyond expectation the company with particular supplier performance. by caring and being proactive and promoting Concerning such matter, Jasa Marga has selected prudence. To maintain the Company’s business the environmental aspects, human rights and sustainability from the raising of business risks, compliance towards the employment regulation. Corporate Risk Management is conducted based on ISO-31000 and Internal Audit. In addition, Particular supplier gain special attention with Jasa Marga has applied the applicable standards tight selection by using criteria of environment, in toll road business to monitor and measure employment and human rights, in addition to the performance of the Company, based on legal documents of the Company such as: Rest the standard of ISO-9001, OSHAS-18001, GRI, Area operator, Tow Services, Security, Cleaning IFRS, and KPKU. Moreover, to develop synergy Service, Collector and Drivers. Such selection was and strengthen the position of Jasa Marga as undertaken to maintain the Company’s image and organization entity who has important roles in reputation since their practices may affect the the community development, the Company is Company’s image. [G4-DMA] actively participating in several associations such as: Indonesian Toll Association, HPJI, KADIN, and Jasa Marga has set special policy concerning REAAA, AEI. [G4-14, G4-15, G4-16] with supply chain who has risks towards the Company’s image. The special policy for supply chain is to regularly assess on the performances of suppliers in the aspect of environment, human rights, compliance towards employment rules and

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Ensuring Sustainability of Economic Growth

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Toll Gate Meruya Utama at JORR w2n Toll Road

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Ensuring Sustainability of Economic Growth

Until the end of 2014, the Company is able to maintain its position as leader in the toll road industry by controlling 72% market share of operating toll road and 80% market share of traffic volume transaction in Indonesia.

Strategy and achievement of performance target Until the end of 2014, the Company is able to in 2014 became the starting point of sustainability maintain its position as leader in the toll road transformation conducted by the Company to industry by controlling 72% market share of be able to continuously growing and developing operating toll road and 80% market share of traffic to strengthen the domination of the Company volume transaction in Indonesia. In accordance with in toll road industry in the future. The Company that matter, the Company continuously improves has undertaken some actions to continue th the quality of toll road operations performance, transformation to improve competitiveness and and diversify the non toll business that will support strengthen the position of Jasa Marga in toll road the development and operations of toll road. The industry in the future. [G4-DMA] Company also transformed the organization and HR management and transformed in information technology to improve efficiency and productivity.

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Economic Performance In the financial performance, the Company has successfully recorded business revenues of Achievement Rp7,229.46 billion, grew by 14.56% compare to Efforts to continuously add the operating toll road is the achievement of business revenues in 2013. part of the Company’s commitment to continuously Meanwhile the net profit achieved amounted to maintain the position of Jasa Marga as leader in the Rp1,403.43 billion which grew by 36.57% compare to Indonesian toll road industry. This is proven with the net profit achieved in the previous year. Efforts the achievement of operations performance that undertaken to develop the Company has shown showed improvement as expected by the Company. positive performance that can be seen from the increasing Company’s assets by 13.54% which grew In 2014, the Company has successfully operated from Rp28,058.58 billion to Rp31,857.95 billion. 3 (three) toll road sections, which are Semarang- Solo Toll Road Ungaran-Bawean Section, Bogor Outer Ring Road 2 A Section and JORR W2 North. Distribution of Economic Value As a company that manages public services At the same time, the Company has successfully especially in toll road management business, the won tender on Medan-Kualanamu-Tebing Tinggi Company is expected to be able to serve its best. (MKTT) Toll Road with length of 61.7 km. MKTT is In providing best services to fulfill the interest toll road that connects the existing Company’s toll of toll road users (stakeholders), sometime the road section of Belmera Toll Road in Medan with Company faces some problems and barriers such Kualanamu International Airport and Tebing Tinggi. as the process of land acquisition, climate change that leads to flood and traffic jam especially in In accordance with the success of operations Jakarta. These matters, for sure will impact on performance improvement, the Company is the achievement of target for toll revenues or the expected to provide the best services in operating Company’s financial performance. To solve such the toll road. The service improvement to the barriers, the Company has undertaken solution toll road users is carried out by modernizing the initiatives internally or by creating synergy with operations and adding the automatic toll gate up to other parties. [G4-EC2] 69 toll gates. Such efforts have positively impact the usage improvement of e-Toll Card, from 11.07% from In solving such barriers, Jasa Marga always provides the transaction volume in 2013 to 11.72% from the distributed economic value to the stakeholders. This transaction volume in 2014. Modernization efforts is a significant aspect for the Company and become were also conducted towards the traffic information a proven commitment of Jasa Marga in providing service that in real time to the toll road users by added values to all stakeholders. adding traffic information board up to 13 pcs and continuously improving services given by Jasa Marga Traffic Information Center. The Company also expanded the toll road lanes and added transaction gates to lower the traffic in the toll gate.

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Generated and Distributed Economic Value [G4-EC1]

Jumlah Per 31 Desember No Uraian (dalam Rp Miliar) 2014 2013 I DIRECT ECONOMIC VALUE GENERATED Toll Road Revenues 6.646,39 5.825,93 Other Revenues 1.945,82 3.960,54 Interest Income 583,10 508,20 Total Revenue of Direct Economic Value 9.175,32 10.271,47 II ECONOMIC VALUE DISTRIBUTED Payment to Supplier and Third Party 1.956,10 1.440,83 Payment to Employees 1.288,70 1.196,20 Payment of Joint Operations Expenses 313,04 308,00 Payment of Tax 702,10 585,90 Payment of Loan Interest 1.117,38 717,37 Payment of Dividend 537,10 640,84 Total - -

Contribution to the State As one of SOEs in the toll road management In accordance with the GMS resolutions on the use business, Jasa Marga continuously providing of 2013 and 2012 profit, the dividend distribution contribution to the state in various forms, including respectively amounted to Rp534.53 billion and the Non Tax State Revenues (PNPB) and various Rp640.84 billion. The dividend paid to the state tax types in accordance with prevailing rules and for the financial year 2013 and 2012 amounted to regulations. The tax payment paid to the state Rp374.17 billion and Rp448.59 billion. cash in 2014 amounted to Rp702.10 billion, grew by 19.83% compare to the tax payment in 2013 Therefore, the total contribution of Jasa Marga to amounted to Rp585.90 billion. the state that has been paid n 2014 amounted to Rp1,076.27 billion, grew by 4.04% to the Company’s Direct financial contribution paid by the Company contribution to the state in 2013 amounted to to the state other than the tax payment is dividend. Rp1,034.49 billion. In realizing all operational This is because Government as controlling activities as in the previous years, Jasa Marga did shareholder with ownership composition of 70%. not receive direct assistance from the state.

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Synergy in Environmental Management

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Community Forestation Program

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Synergy in Environmental Management

The seriousness of the Company on environmental management is recognized by the community with the presentation of Indonesian Green Awards (IGA) 2014, in the category of the development of renewable energy and pioneering activities on pollution prevention.

Environmental sustainability is the most important simple steps, can be an inspiration for the entire factor in carrying out operational activities. It community to work together and make a real is impossible to carry out operational activities contribution to the environment. without considering the impact of operations on the environment. Effort to increase the positive impact The seriousness of the Company on environmental and reduce the negative impact of these business management is recognized by the community activities is the focus of the Company. with the presentation of Indonesian Green Awards (IGA) 2014, in the category of the development The synergy with all stakeholders is needed of renewable energy and pioneering activities on to participate and contribute in maintaining pollution prevention. [G4-DMA] environmental sustainability. Jasa Marga together with all subsidiaries continues to contribute to The performance and the Company’s efforts are preserving the environment through risk mitigation also reflected by the inclusion of the Company as a result of operational activities either directly or in SRI index, issued by the KEHATI Foundation, indirectly. One of the great attentions of Jasa Marga which refers to the procedures for Sustainable and to environmental sustainability is reforestation Responsible Investment (SRI), called SRI Index toll road by planting mahogany, tamarind, acacia KEHATI. This index was formulated by considering and other trees. The Company expects these business activities in connection with the awareness

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Corporate Forestation Activity

on the environment, corporate governance, b. The use of products that refer to the eco community involvement, human resources, human products (environmentally friendly products). rights, and business conduct and business ethics c. Preparing the number of trees to be replanted in that are in tune with the international standards. every project activity. d. Planting trees elsewhere to replace trees that Commitment of Preserving have to be cut down. 2. board of Directors’ Stipulation No. 165/ Environment KPTS/2013 on Guidelines for Environmental Jasa Marga ensures that in carrying out the toll road Management System (EMS) which are aimed management activities are in compliance with the at preventing pollution and/or environmental prevailing regulations. Related to the environment, damage surrounding the Company’s business, the Company has formulated an Environmental maintaining cleanliness and preservation of the Management System (EMS) as a commitment environment and management approach to the environment that refers to Law No. 32 of 2009 on Protection The target that is expected by the Company and Environmental Management and Government of the implementation of EMS policy is 1) The Regulation No. 27 of 2012 on Environmental Permit, creation of a green environment, clean healthy, as well as Decree of the Minister of Environment No. beautiful and qualified in the Company's business; 45 of 2005 on Guidelines for Developing an AMDAL. 2) The fulfillment of the ecosystem in the Company's business environment, and; 3) The The high commitment of the Company to achievement of satisfaction of the customers and environmental concerns set out in the policy of stakeholders. While the EMS program priority is Directors of PT Jasa Marga (Persero) Tbk. as follow: the establishment of disciplinary culture towards [G4-DMA] Clean Green and Healthy. To measure and monitor 1. board of Directors Circular Letter No. 18/ the achievement of the targets for the commitment SE/2010 on Energy Saving and Environmental to the environment, the Company has prepared Preservation, which covers: a Road Map for the Environmental Management a. energy savings through the use of new System as a reference implementation of various technologies that can reduce energy activities related to the environment. consumption.

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Environmental Management System (Ems) Roadmap

CULTURE HABIT Discipline • EMS becomes a AWARENESS • EMS becomes a necessity of the FRAMEWORK • EMS necessity of the Company, its • Management/ implementation Company, its employees, and • Formulation Employees according to employees, and is acted upon of Policies, aware of their the regulations is acted upon critically and Guidelines and obligation with supervision critically and fully responsibly Regulations to abide by • EMS fully responsibly • Formulation of the laws, implementation Organization regulations, and • Quick and • Formulation EMS concept accurate of Procedures reporting and Work • Review of Instructions policies (form) • Re- • Periodic audit identification of AIMS program environment • Socialization • Reward and • Systems • Program • EMS program punishment enhancement development kick-off • Comprehensive • Periodic audit • Trial run • Formulation of and timely program • Preparation training manual reporting • Periodic of human and procedures • Periodic inspection resources • Team formation inspection • Reward and with EMS • Environmental • Consistent punishment Preparation for Implementation for Preparation competence identification awareness and • Comprehensive • Benchmarking socialization and timely program reporting • Maximization • Periodic of EMS inspection competence program • Prevention and • ISO 14000 reidentification certification of environment • Monitoring and evaluation • SML enhancement • ISO 14000 certification

2013 2014 2015 2016 2017

The Use of Materials Operational activities of the construction and repair of toll road and facilities using a sturdy material that will produce a good quality road without forgetting the environmentally friendly aspects of the material. The Company uses the main material, include, aggregate, asphalt, sand, cement or some other material. The Company ensures that there is no material classified as Toxic and Hazardous Materials (B3) used in this process. The following data of material usage information based on the volume usage.

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Material Used by Volume

Total Material Unit 2013 2014 Asphalt To n 36,368.79 34,630,13 Asphalt cement To n 6,288.42 2,148,63 Cement To n 4,501.53 375,429,33 Concrete m3 252,234.04 579,686,66 Gravel m3 17,446.81 339,895,94 Iron ton - 1,099,590.16 Sand m3 - 86,319.74

The improvement activities of toll road construction conducted periodically produces a residue from the main material in the form of former asphalt. This residue material is not recycled, but can be used directly. Form of direct utilization of the residue material is for road construction in the area around the toll roads being built.

Energy Consumption [G4-EN3] Utilization of energy used to support operational activities. Jasa Marga's operational activity cannot be separated from the use of direct energy or indirect energy. Direct energy use of primary energy sources consist of diesel and petrol (premium and pertamax). Both types of energy sources are used as energy sources of operational vehicles and vehicles transporting toll road material. All operational vehicles use fuel pertamax, in accordance with the Ministry of ESDM (Energy and Mineral Resources), that for SOEs should use non-subsidized fuel. While heavy equipment, generators, etc. use diesel fuel. During 2014, total fuel load has been removed by Headquarters and Branch for both types of energy sources, namely Solar for Rp505,744.42 and Pertamax of Rp3,854,687.19.

Fuel Expense of Head Office and Branch Office in 2014 (in Rupiah full amount) 3,854,687.19 505,744.42

Solar Pertamax

The Company realizes that the source of energy used in the process of operational management of toll roads, is generally a non-renewable energy source. Therefore, on an ongoing basis Jasa Marga continues to make efforts to reduce energy consumption by improving the efficiency and seek alternative sources of renewable energy. The following information data of the use of primary energy sources.

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The Use of Primary Energy Sources

Source of Energy Unit 2014 2013 Diesel Fuel liter 1,146,516 341,635.00 Premium liter 168,621 333,445.56 Pertamax liter 1,278,208 572,776.52 Dex liter 293,971 263,959.00 Total liter 2,887,315 1,511,816.08

To the use of primary energy sources, the Company has made the conversion calculation of energy used and the CO2 emissions produced. Here the data conversion of energy used and CO2 emissions produced.

Energy Conversion [G4-EN15]

Source of Energy Energy Conversion 2014 2013 Diesel Fuel liter 128.1 38.2 Premium liter 166.4 329.1 Pertamax liter 106.5 47.7 Dex liter 22.9 20.6 Total liter 401.1 210.0

CO2 Emission [G4-EN15]

Source of Energy CO2 Emission 2014 2013 Diesel Fuel liter 3,059,019.3 911,516.3 Premium liter 409,142.0 809,072.3 Pertamax liter 2,870,216.1 1,286,169.7 Dex liter 623,470.4 559,819.2 Total liter 6,961,847.0 3,645,266.4

In the operations management of toll roads, besides using indirect energy, the Company also utilizes indirect energy. Indirect energy is electrical energy supplied by PLN. The utilization of this energy is to meet the needs of headquarters, branch offices, toll gates lighting and lighting around the operational facility.

During 2014, the use of electric energy reached 50,007.16 MWh or equivalent to 180,025.77 gigajoule, while the electrical energy consumption in 2013 amounted to 48,708.92 MWh or equivalent to 175,352.13 gigajoule. Here is the data of electrical energy consumption.

Pemakaian Energi Listrik

Description Satuan 2014 2013 PLN Electricity KWh 48,708,924.00 50,007,156.85 GJ 175,352.13 180,025.77

PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report 85 Sustainability 2014 Event Remarks from Remarks from About Company Performance Sustainability Highlights, President President Sustainability Profile Highlights Performance Awards and Commissioner Director Report 2014 Highlights Certification

Energy Saving [G4-EN6] The Company realizes that the need for raw materials in the form of non-renewable energy sources cannot be replaced in this reporting period. However, to keep contributing to the environment, Jasa Marga seeks earnestly in managing energy resources so as effectively and efficiently. Some electrical energy saving initiatives undertaken includes: 1. The use of street light (PJU) using LEDs, for electrical energy savings at as many as 7,004 places. 2. The use of Solar Cell for street light. 3. The replacement program of energy saving of AC and temperature setting of AC in accordance with the provision of the company. 4. The policy to turn off the unused room lights.

Company’s initiative in environmental management through the development of sollar cell technology with the utilization of renewable energy in the form of sunlight has gained recognition from the community (stakeholders). Recognition of stakeholders to such initiatives in the form of awards Indonesian Green Award (IGA) 2014, the category of the development of renewable energy and pioneering activities on pollution prevention. The following data on the use of LED lights and sollar cell technology at PJU toll road operated by Jasa Marga.

LED JPU Light and Solar Cell at Jasa Marga Toll Road

LED Light Solar Cell Light Toll Road Section 2014 2013 2014 2013 Jagorawi 339 Jakarta Inner Ring Road- 0 3484 Airport Jakarta-Tangerang 0 827 Jakarta-Cikampek 382 63 JLJ 540 Purbaleunyi 661 Palikanci 120 Semarang 15 Surabaya-Gempol 740 66 Belmera n.a

The use initiative of LED lights and solar energy utilization with sollar cell at PJU, has contributed significantly in saving electrical energy consumption.

While electrical energy saving during 2013 amounted to 88,015.1 kWh/month or a total of 1,056,181.5 KWh a year. This value is equivalent to a reduction in emissions of 720,051.7 kg CO2 eq.

86 PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report Jasa Marga Ensuring Ensuring Synergy Human Resources Occupational Developing Governance Sustainability Customer to Manage Development Health Community of Economic Satisfaction Environment and Safety Welfare Growth Guarantee

Control of Air Pollution Emission In order to control pollution and greenhouse gas (GHG) effect, Jasa Marga continues to perform a variety of initiatives, in addition to the use of electrical energy saving that have been running. Seriousness in reducing GHE emission, realized through the use of fuel with a higher octane value of the operational vehicle. Emission of exhaust gases released by the fuel with a higher octane value is considered more friendly to the environment. [G4-DMA]

Jasa Marga also pays attention to the efforts to control emission of potentially contain ozone- depleting substances (ODS). Emission sources that could potentially contain ODS is the use of freon made of chlorofluorocarbons (CFCs) in air conditioning, and the use of halon for fire extinguisher (APAR). Therefore, Jasa Marga realizes the replacement of refrigerant in air conditioning with a more environmentally friendly refrigerant. [G4-EN20]

Another initiative to reduce CO2 air pollution from motor vehicle exhaust of toll road users, the Company implement conservation of bintaro tree planting and reforestation program around the toll road. The existence of these trees becomes important because it contributes to the potential for absorption of carbon dioxide (CO2) that is included in the GHG.

As the reduction of air pollution, the Company monitors the air condition on all major operational areas. The monitoring result showed that the measured parameters always under the provisions of the environmental quality standards established in accordance with the regulations. Monitoring of the quality of the environment is a form of implementation of social responsibility of the Company. Based on the monitoring result, the main source of air emissions comes from burning fuel vehicle of toll road users. Here are the results of monitoring of air emission around toll roads.

Monitoring Result of Greenhouse Gas Emission and Air Emission Level [G4-EN15]

Standard CO SO2 NO2 H2S NH3 HC Pb O3 Dust Threshold 30.000 900 400 0,2 17 160 2 235 230 Palikanci 7396,40 97,777 <10 - - - 0,143 22,44 230 Semarang 224,45 40,01 12,44 <0.0066 6,49 - <0.044 5,41 171,38 Jagorawi 4511,33 350,33 152,92 - - 122,67 0,268 113,92 203 Jakarta- 4858,75 32,23 26,76 - - 120,52 0,21 23,99 187,64 Tangerang Jakarta- 8090,30 329 119 - - 130 0,25 104,5 204 Cikampek Belmera 1386,30 163,32 108,42 <0.002 0,09 - 0,09 - 280,00

PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report 87 Sustainability 2014 Event Remarks from Remarks from About Company Performance Sustainability Highlights, President President Sustainability Profile Highlights Performance Awards and Commissioner Director Report 2014 Highlights Certification

The Use of Water Water needs in the operational activities of Jasa Marga, generally used for the purpose of employees to the needs of Household Office (RTK). Water use is valid for the entire headquarters, branches and operating units. Meeting water needs in Jasa Marga obtained from PDAM and ground wells. Associated with the use of water from ground wells, Jasa Marga conduct surveillance and monitoring to ensure the collection and use of water does not interfere with the water source. The following data on the use of water based on its source.

The Use of Water

Water Source Unit 2014 PDAM m3 263.575,12 Ground Wells m3 524.975,45

To support the optimization of water use, especially for domestic needs, Jasa Marga has implemented a policy of Waste Water Treatment Plant (WWTP) simply as a method to recycle the waste water usage. Results of waste water recycling, used for limited purposes, such as washing operational cars and watering plants, the rest flowed into a common duct that connects to the nearest water body.

Another initiative towards water conservation efforts is the use of open area around the headquarters building, office support and operational units away from the construction of the toll road as water catchment areas. Areas that have been designated as a water catchment area, fitted with biopori holes as media infiltration of rainwater or runoff water into the soil, so that the condition of the ground water level is relatively maintained.

Impact and Opportunity of Climate Change [G4-EC2] Extreme climate change impacts on the operations of Jasa Marga. The emerging impact results in the damage of toll road because of flooding with high intensity of rain and landslide that makes disrupted traffic on the toll road. Jasa Marga has performed mitigation to the climate change by building additional construction so that the toll road managed is prevented from the risk of damage, even perform basic repair to damage caused by extreme weather. Here is the weather effect on road conditions managed by Jasa Marga.

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Toll Road Section Handling Note CTC • Normalization of Long storage KM 20+600B • Flood Management • Replacement of Submersible Pump • Clean Environment • Normalization of Cross Drain and River • Installation of clean water filter in GT Kamal 2 and Kamal 3 JLJ Normalization of channel, main hole and cross drain Flood Management Jagorawi Landscape gardening and green program along Jagorawi road Reforestation Jakarta - Cikampek Reforestation of Toll Road Reforestation Jakarta - • Normalization of channels and channel quality improvement • Flood Management Tangerang • Green program and reforestation and landscaping location at • Reforestation KM 08+200 to KM 26+100 A/B Palikanci • Planting of trees at KM 209 to 221 • Reforestation • Planting of trees at KM 223 to 232 • Flood Management • Normalization of channels with river stone at KM 207 to 225 Purbaleunyi • Construction, Normalization, repair of side channel, • Flood Management Structuring Drainage Study Reforestation • Reforestation of Padaleunyi and Cipularang roads Surabaya • Reforestation of Rumija Toll • Reforestation • Workers in normalization of side channel • Flood Management Semarang Normalization of channels at KM 07+2008, Ramp Jangli Flood Management

The Reforestation of Toll Road and Environmental Conservation As a real contribution of the Company in an effort to preserve nature, which have a positive impact on the environment and address global warming and climate change through reforestation program of toll road and conservation of plants. [G4-EN19]

Reforestation of toll road as an effort to mitigate the environmental impacts by planting more than 127,000 trees that have been distributed to be planted around the Company’s tollroads in 2014. The types of trees that were planted are, include, mahogany, tamarind, acacia and other trees.

While the Bintaro plant conservation conducted by the Subsidiary of PT Jakarta Outer Ring Road (JLJ) as a subsidiary of the Company as many as 3,000 trees. PT JLJ has involved all employees in the conservation program, ranging from making and selecting of fruit seeds bintaro as the seed until the planting process of plant shoots bintaro.

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Planting of Trees at Toll Road Branch/ Number of Trees Type of Trees Location of Planting Toll Road 2013 2014 Jagorawi 6,600 Rain Tree (Samanea saman), Mahogany (Meliaceae), Sea Mango (Cerbera The surrounding of Toll of manghas), Norfolk Island Pine (Araucaria heterophylla), Footstool Palm Rumija Jakarta- (Livistona rotundifolia), Christmas Palm (Veitchia merrillii), Cabbage Tree Bogor-Ciawi (Cordyline), Cassia Glauca, Peacock Flower (Caesalpinia pulcherrina), Oleander (Nerium oleander), Butterfly Orchid Tree (Bauhinia purpurea), African Tulip Tree (Spathodea campanulata), Frangipani (Plumeria), Traveller’s Palm (Ravenala madagascariensis), Curtain Fig Tree (Ficus hili limelight), Agave, Lilly pilly (Syzygium oleana), Stepertya, Bougainvillea Jakarta - 15,601 Mahogany (Meliaceae), Sea Mango (Cerbera manghas), Bay Leaf The surrounding of Toll of Cikampek (Syzygium polyanthum), Crape Myrtle (Lagerstroemia), New Guinea Rumija Jakarta-Cikampek labula/Kadam (Anthocephalus cadamba), Cajeput (Melaleuca cajuputi), Black-wood Cassia (Senna siamea), Pule, Caqui (Manilkara kauki), African Mahogany (Khaya), Rain Tree (Samanea saman), Alexandrian Laurel (Calophyllum inophyllum), Oil Palm (Elaeis guineensis), Bougainvillea and ornamental plants. Cawang- - Bintaro, Trembesi, Palm Sadeng Chinensis, The surrounding of Toll of Tomang- Palm Putri, Cemara Lilin, Tanjung, Dadap Rumija Cawang- Merah, Oleander, Bunga Kupu-Kupu, Ficus Tomang-Cengkareng Hili Limelight, Andong Laut, Bougenville Pagaran, Calathea, Agave, Aralia, Sambang Darah, Thevetia. Semarang 2,342 Mahogany (Meliaceae), Rain Tree (Samanea saman), Tanjung (Mimusops The surrounding of Toll of elengi), New Guinea labula/Kadam (Anthocephalus cadamba), Rumija Semarang Bougainvillea, Rambutan (Nephelium lappaceum), Cockspur Coral Tree (Erythrina cristagali), Sea Mango (Cerbera manghas), Albasia (Albizia chinensis), Jati Kebon Belmera 400 Lilly pilly (Syzygium oleana) The surrounding of Toll of Rumija Belmera Surabaya- 12,159 Spathodea (Spathodea campanulata), Mahogany (Meliaceae), Ashoka The surrounding of Toll of Gempol Tree (Polyalthia longifolia) Rumija Surabaya-Gempol Jakarta- 7,000 Mahogany (Meliaceae), Cockspur Coral Tree (Erythrina cristagalli), Crape The surrounding of Toll of Tangerang Myrtle (Lagerstroemia), Golden Teak (Tectona grandis), Frangipani Rumija Jakarta- (Plumeria), Lettuce Tree (Pisonia alba), Tangerang Song of India (Dracaena reflexa), Lady Palm (Rhapis excels), Golden Cane Palm (Chrysalidocarpus lutescens), Bougainvillea, Peacock Flower (Caesalpinia pulcherima), Lilly pilly (Syzygium oleana), Oleander (Nerium oleander), Yucca, Pygmy Date Palm (Phoenix roebelinii), Euphorbia, Sansevieria, White Agave (Agave Salmiana), Green Agave, Red Pineapple (Ananas bracteatus), Dwarf Screwpine (Pandanus pygmaeus), Ixora, Canna (Canna indica). 27,851 Peacock Flower (Caesalpinia pulcherima), Pili Nut (Canarium ovatum), The surrounding of Toll Black Wattle (Acasia mangium), Rain Tree (Samanea saman), Coral Tree of Rumija Cipularang- (Erythrina variegate), Ashoka Tree (Polyalthia longifolia), Oil Palm (Elaeis Padaleunyi guineensis), African Tulip Tree (Spathodea campanulata), Oleander (Nerium oleander), Bougainvillea, Tropical Almond (Terminalia catappa), Earleaf Acacia (Acacia auriculiformis), African Mahogany (Khaya), Pili Nut (Canarium ovatum), Trumpet Tree (Tabebuia). Palikanci 3,880 Mahogany (Meliaceae), Acacia, Crape Myrtle (Lagerstroemia), Tropical The surrounding of Toll of Almond (Terminalia catappa), Rain Tree (Samanea saman), Rosewood Rumija Palikanci (Pterocarpus indicus) and Mango (Mangifera indica.) Jumlah 75,833

While the subsidiary of Jasa Marga throughout 2014 has planted as many as 54,079 trees.

Planting of Tress in Subsidiary in 2014

Subsidiary Total Trans Marga Jateng 28,729 Marga Lingkar Jakarta 12,757 Trans Marga Jakarta 3,925 Jasa Marga Pandaaan Tol 1,888 Marga Sarana Jabar 3,780 Jalan Tol Lingkar Luar Jakarta 3,000

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Planting of Bintaro Trees at JORR Section; the Green Program was initiated by the Employees with Low Cost

PT Jalantol Lingkarluar Jakarta (JLJ) carried relatively low. After collecting the seeds, out a reforestation by the side of JORR. then the seeds are sorted which seeds have Since its inception in March 2014, at least the potentially to be replanted by giving 44 reforestation actions have been carried the planting medium polybag. Polybag out by planting 2,307 bintaro tree seedlings containing potential seed is then stored and involving 765 participants. This action is in a place that may not be exposed to carried out as a form of the responsibility of direct sunlight. PT JLJ planted the bintaro the Company over the impact of pollution trees regularly at least three times a week. from the operation of toll roads, PT Jalantol Furthermore, the working unit of Security Lingkarluar Jakarta (JLJ) and as a form of officials routinely conducted planting corporate social responsibility for clean air activities every weekend. Such activity was requirements so that the environment around also carried out by JLJ group of activists of the toll road is comfortable. nature known as JALLPALA. They planted as many as 180 bintaro trees along the side of As widely known that the reforestation JORR. Through this tree planting activity, program could reduce the levels of carbon PT JLJ aspires to conduct reforesting along dioxide (CO2) or other pollutants in the the edge of the JORR lanes. air. During the ongoing process of photo synthesis, plants absorb carbon dioxide and release oxygen, at least every 1 hour, 1 hectare of green leaves can absorb 8 kg of CO2. Thus, reforestation can reduce the greenhouse effect and climate disruption.

Employees from various work units in PT JLJ took part in the event as the executor of the community development activities. Bintaro tree is chosen because this plant produces seed for regeneration and adaptable to environmental conditions. As typical plant used for reforestation at coastal areas and in the city, Bintaro tree also has strong roots and flexible enough to adapt to weather anomalies.

Planting process begins with the collection of seeds that fall around the bintaro tree. With the breeding sources, it can be stated that bintaro tree reforestation costs is

PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report 91 Sustainability 2014 Event Remarks from Remarks from About Company Performance Sustainability Highlights, President President Sustainability Profile Highlights Performance Awards and Commissioner Director Report 2014 Highlights Certification

Ensuring Customer Satisfaction

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Road maintenance activity

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Ensuring Customer Satisfaction

Jasa Marga always ensure the toll road in excellent condition and comfortable to walk on. Various programs of construction services were carried out like pothole zero (no hole), scrapping filling and overlay namely the routine maintenance carried out by Jasa Marga to maintain the condition of the road is always in a state of high performance.

Consumer or customer is one of the stakeholders the toll road users are an important concern as well that have a strategic role in ensuring business as the Company's commitment to achieve customer continuity, making it a major partner in developing satisfaction. the Company. Therefore, the Company places customer satisfaction as a fundamental and The Company's main priorities in providing the best important aspect of its service. service to customers is summarized in the strategic steps as follow: Jasa Marga strive continuously to fulfill the 1. Increase the speed of the transaction in order to expectation of customer as one of the stakeholders reduce queues at toll gates. who have a major role in ensuring business 2. streamlining traffic through capacity building and continuity, through improvement of quality of provision of services traffic information in real service and easy access to information, quality care time in order to reduce nuisance trips. of the toll road, solution of all customer complaints 3. Improve the quality of construction of roads, and implementation of customer satisfaction survey. bridges and buildings operational complement Safety, comfort and smoothness on the toll road for

PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report 95 Sustainability 2014 Event Remarks from Remarks from About Company Performance Sustainability Highlights, President President Sustainability Profile Highlights Performance Awards and Commissioner Director Report 2014 Highlights Certification

Management Policy on Safety of Road User Jasa Marga as a company engaged in toll road industry, has a Minimum Service Standards (MSS), defined by the Regulation of the Minister of Public Works No. 392/PRT/M/2005 dated August 31, 2005 on Minimum Service Standards that must be reached toll road business entities in order to improve service to toll road users and PP (Government Regulation) No. 15 Year 2005 on the Toll Road where the toll road is designed to withstand the heaviest load (MST) of the lowest of 8 (eight) tons.

To meet the SPM and provide comfort and safety to the toll road users (customers), the Company issued a policy through the Board's decision PT Jasa Marga (Persero) Tbk. as follows: [G4-DMA] 1. Circular No. 05/SE-DIR/2014 dated March 14, 2014 on Guidelines for Compliance Measurement of Minimum Service Standards (MSS) and the Toll Road Directors Policy No. 111/KPTS/2011 dated June 24, 2011 on Guidelines for Service Excellence in the Environment of PT Jasa Marga (Persero) Tbk. 2. Letter of Appeal from Director for Operation No. CA.LL06.930 dated September 4, 2014 on Preparation for Integrated Operations Week to Control Overloaded Vehicles.

In order to improve service to toll road users as customers and for the fulfillment of SPM, the Company made the following initiatives:

Strategy of Service and Application 2014

Strategi Pelayanan Aplikasi Improving the accuracy in collecting toll 1. adding the number of GTO Entrance, Toll Gate Exit and GTO revenues with an aim to reach zero loss E-Toll through the improvement of security system 2. Installing CCTV, RTMS, TCT, ALB, magazine train at the toll to guard toll revenues that will be applied gates in stages with priority of implementing the system at branches that have high traffic 3. Improving toll road facilities volume and replacing toll equipments that are already more than 5 years old. Creating a smooth traffic flow, safe and 1. Providing technology applications to support operations comfortable toll road through modernization (CCTV, VMS, RTMS, Optical Fiber) of operational technologies with a priority 2. Provision of operational supporting facilities (radio for technological application at toll road communication, speed gun, retro-electrometer, moving roller, sections with high traffic volume and improve and fire estinguiser). traffic information service center as well as complaints are easily accessible and always 3. Painting the road marking for GTO special lanes and reflects real time condition. installation of automatic toll gates (GTO). 4. Zero Potholes and preventive maintenance. 5. scrapping-Filling-Overlay (SFO) program with a priority at locations with repeated loads and/or the extention of condition is critical. 6. Increasing the road capacity program with a priority at toll roads with v/c ratio is closed to 0.8 based on PPJT. 7. Modernization of the use of appropriate technology and innovative operations with the application of materials with high economic value to support the efficiency and effectiveness of maintenance and ensure availability of the supporting/complement tools to maintain security and safety in accordance with the requirements of the SPM. 8. responsive to the efforts for nature conservation activities through reforestation of toll roads in order to support the efforts to slash carbon emissions as well as the use of green technology and green construction.

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Operation of Overloaded Vehicles In addition to these efforts, an integrated operation was carried out by Company in collaboration with the Department of Transportation and the Police, starting from September 8 to 12, 2014. The purpose of the operation is to create a culture of orderly traffic, therefore the toll road is smooth, safe and comfortable for the drivers. The overloaded heavy vehicles were the operation target because those vehicles are often damaging the road pavement as well as slowing down the speed as the overloaded vehicles were underspeed.

Overload Vehicle Data

No Branch Overload Vehicle Remarks 1. Surabaya Gempol 124 2. Cawang Tomang Cengkareng 284 3. Branch Jagorawi 226 4. Branch Palikanci 678 5. Branch Jakarta-Cikampek 284

Overloaded vehicles found on operations performed by each branch with varying time (5-7 days)

Zero Pothole (Smooth Road Without Hole) In serving road users, Jasa Marga always ensure the The Company and its subsidiaries continue to toll road in excellent condition and comfortable to carry out development and innovation in solving walk on. Various programs of construction services problems of the hole on the toll road as the slogan were carried out like pothole zero (no hole), "Zero Pothole". If in 2014, the Company made the scrapping filling and overlay namely the routine closing holes with common methods such as that maintenance carried out by Jasa Marga to maintain with the Cold Mix asphalt and Hotmix asphalt, then the condition of the road is always in a state of high in 2015 adds innovation by using concrete material performance. Also, widening or additional road namely Rapid Setting (Concrete Patching) and capacity, implemented to keep the travel speed of Asphaltic Plug. This method is used in accordance road users is maintained. with the condition of hole found and road condition. Jasa Marga ensures the operation of the toll road, always meet the Minimum Service Standards (MSS), which include service substances such as Safety Assurance of Road the condition of toll road, average travel speed, Users accessibility, mobility, safety, and the unit aid/ The Company continues to maintain the quality of rescue and support service. the road in an effort to maintain the comfort, safety and smoothness on the toll road as well as safety Based on the study of the Company, that the hole assurance for the users of the toll road. Several appeared in the toll road not only because of high initiatives undertaken by the Company include: rainfall, but also supported by other factors such 1. scrapping Filling Overlay (SFO) as tooling age of toll road is long and the load scrapping Filling Overlay (SFO) is maintenance of vehicles passing over the maximum limit set activities of the toll road undertaken to keep the above 10 tons, so it does not correspond to the asphalt toll road remains in good condition. In current use of roads that built only for vehicles 2014, the Company has work on SFOs to maintain under 10 tons. the quality of toll road with a total length of

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1,105,277m2 scattered across roads operated by Jasa Marga Traffic Information Center the Company. The maintenance cost of toll roads (JMTIC) in 2014 reached Rp1,568.82 billion. As tool to disseminate information services that support customers’ sense of security, Jasa Marga Toll Road Maintenance Expenses has set up an information center for consumers, (in billion Rp) namely Jasa Marga Traffic Information Center (JMTIC) which is a medium of communication for toll road users. JMTIC will record and follow up questions and complaints from toll road users. 1,568.82 Product information services provided through JMTIC can be accessed by the public society,

1,364.54 especially road users through four channels of media, as follow: 1. Website: www.jasamarga.com 2013 2014 as a publicly listed company, PT Jasa Marga is challenged to continue to improve its positive 2. Toll Road Public Lights image. In addition, the Company is challenged In 2014, the electronic facilities such as toll road to provide information quicky, correctly and lights cover 11,305 points of PJU lamp. accurately, which is one of characters of a listed company. In order to attain that goal, the 3. Increasing the capacity of the toll road gates Company has had a medium to disseminate In 2014, the Company increased the capacity of information and online information support the gates in order to improve service on the toll roads Company’s communication strategy, called www. operated by the Company including widening jasamarga.com. lanes in Cibinong-South Sentul Toll Road section 2. social Media: Twitter @PTJasa Marga of the Jagorawi toll road and Pasteur-Kopo In line with the increasing needs of toll road users Purbaleunyi Toll Road section. In addition, the to get the latest traffic conditions and as an Company added the number of toll gates to effort to improve services to the toll road users, in increase transactions, which ultimately reducing addition to providing Call Center Services, JMTIC congestion at toll gates. also provides access to the toll road users through twitter @PTJasa Marga. Currently, twitter of Information Access and Toll PTJasa Marga is managed by an operator which is integrated with the JITC work unit. Road Services The Company continues to develop and update The incoming information is divided into several the information service system, transactions and categories, namely: construction in order to improve satisfaction of toll a. asking information about traffic conditions road users. In the information services, the Company b. requesting for help from officers improved variety of services to make it easier for toll c. Providing information about traffic conditions road users to get access to the toll road information. d. Complaints/grievances/criticism e. suggestion Jasa Marga provides access for customer who f. Question (In addition to the traffic condition filed a complaint over the discrepancy between information) the standard of product information services with the standard expected by customer, through: Jasa Currently twitter of Jasa Marga (@PTJasa Marga) Marga Traffic Information Center (JMTIC) provides traffic condition information every 20 minutes. In 2014, the number of Jasa Marga’s twitter followers reached 100,530 people, an increase of 51,471 or 51% compared to the number of followers in 2013.

98 PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report Jasa Marga Ensuring Ensuring Synergy Human Resources Occupational Developing Governance Sustainability Customer to Manage Development Health Community of Economic Satisfaction Environment and Safety Welfare Growth Guarantee

as for toll road users who use gadgets such Total Followers as Google Android, Apple iOS and Blackberry, can access the CCTV on m.jasamargalive.com address. This is done so that users can access the toll road data provided by the Company that are available through a wide range of 100,530 computers and the latest gadgets. In order to maintain and improve service quality related with 49,059 the presentation of traffic information in real time, in 2014, the Company undertook a routine maintenance activity and optimized streaming 2013 2014 capabilities by raising the capacity of the server.

4. Variable Message Sign (VMS) 3. Closed-Circuit Television (CCTV) In order to increase consumers’ awareness about To obtain visual information about real time the JMTIC call center, the Company actively traffic conditions on toll roads, the Company disseminates information to the toll road users provides the CCTV monitoring application that through advertisements in online media (www. can be accessed through various platforms detik.com) and Variable Message Sign (VMS). (interplatform). For a desktop computer users, In 2014 as many as 60 VMS have been installed in various types of operating systems can be all toll roads operated by the company and used, including Microsoft Windows, Apple PT Jalantol Lingkarluar Jakarta MacOS or Linux, can access the CCTV on www. jasamargalive.com.

Flowchart of customer communication through JMTIC can be explained through the four plots of customer communication process as follows.

Start

1 Customer Finish (Users of Toll

Management 4 Representative Customer Branch Services Officer 3

Complain Inputs Information Help Inquiries

CCTV Shift Head LAN Chat RTMS 2

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The Use of Information Channel and Customer Complaints In 2014, the number of telephones that received reached 609,439 calls, increased by 3.4 percent from 2013, which amounted to 589,588 phone calls

Service Category Frequency Based on Service Given by JMTIC

No. Status 2014 2013 1. Information Request 2,548 5,167 2. Help Inquiries 12,580 15,864 3. Information Request 593,158 567,569 4. Complaints 1,049 808 5. Inputs 104 180 TOTAL 609,439 589,588

Survey of Customer In disseminating information about the service, the Company provides information to adjust the Satisfaction characteristics of each group of stakeholders. In order Dalam rangka meningkatkan kepedulian terhadap The Company has a strong commitment to fulfill to thoroughly understand the needs and views of call center JMTIC, Perseroan aktif melakukan the responsibility to users of the toll road as various aspects of the scope of the toll road industry sosialisasi kepada pengguna jalan tol melalui iklan di customers. One evident is through conducting in Indonesia, mapping perceptions of stakeholders media online (www.detik.com) dan Variable Message regular Customer Satisfaction Survey every year. is needed, on how each group of stakeholders Sign (VMS). In 2014, the result of the Customer Satisfaction assess the service program that has been done by Index on the Company’s Toll Road was 4.41 out of the Company. The position and the perception of a scale of 1-6. This shows an increase in customer Type of complaints stakeholders on the image, brand and company satisfaction to service performance of the Company Data monitoring tindaklanjut penyelesaian (termasuk awareness are measured through evaluation activities. pelibatan pihak lain) in 2013 amounted to 4.03. [G4-PR5] Evaluation of the effectiveness of the external media Customer satisfaction survey carried out by using activities was carried out in December 2014 until a questionnaire to the respondent. The survey was January 2015 in collaboration with the Institute of conducted to measure perceptions of stakeholders Management, Faculty of Economics, University of on quality of: Indonesia. The evaluation involves stakeholders • Transaction service of the Company such as national media reporters • Traffic service who are covering infrastructure and stock market, • Construction service public relations and the Ministry of Public Works, capital market analysts, business partners (rest area manager), toll road users and communities by focusing on information that can be measured such as traffic condition information, the info on toll road service facilities, corporate actions and performance of the Company (including shares information) which are presented in the website (www.jasamarga.com), social media twitter (PTJasa Marga), print advertorial and outdoor media. Based on the results of the evaluation of the effectiveness of the external media, the Company obtained 4.13 score out of the scale of 1-6, which means that the information provided by the Company through a wide variety of external communications media showed a positive response.

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Customer Gathering

Jasa Marga Automotive Gathering to Meet Customers As an effort to improve service to toll road users, the The objective of Jasa Marga Automotive Gathering Company carried out an activity called “Jasa Marga is to encourage members of the automotive Automotive Gathering” in cooperation with some communities as toll road users to jointly build a of vehicle communities. The number of participants culture of traffic discipline on the toll road. Apart reached 201 vehicles and 634 individual participants. from a means to disseminate information about The participants gathered at the site start at Rest Area efforts of the Company to improve services, the 39 toward Cikampek. event was also utilized by community members to give inputs to Jasa Marga.

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Human Resources Development

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Motivation training

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Human Resources Development

The harmonious relationship between management and employee union is needed to create a conducive working atmosphere in order to achieve the common goal, namely the progress of the Company and welfare of employees.

HR as a major asset and a strategic partner in as Human Capital, the Company positions HR as running the business and one of the stakeholders an element that must be managed properly as the who should receive special attention and capital to improve business performance in the long coaching. Therefore, effort to maintain the term in a sustainable way. sustainability of Jasa Marga,can not be separated from the development of human resources (HR) Commitment to Human in a sustainable way. Hence, Jasa Marga continues [G4-DMA] the business coaching ofJasa Marga Employees Resources Development Commitment to human resource development who have the competence, commitment, and the which is set forth in the Board of Directors’s best performance. Stipulation No. 39/KPTS/2014 dated March 3, 2014 on the competency-based human resources Jasa Marga carried out "Human Capital management with the 9 (Nine) Strategic Process of Transformation" integratedly and comprehensively Human Capital System. as part of the Company's organizational transformation. Transformation gives a new paradigm which considers Human Resources (HR)

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Competency-based human capital system includes Organizational Design, Employee Recruitment and Selection, Training and Development, Performance Management, Remuneration System, Career and Talent Management, Industrial Relations and Post Employment Management, which are integrated and supported by Information Technology System.

Chart of Nine Processes of Strategic Human Capital System in Jasa Marga

Business Performance

SATISFACTION AND LOYALTY OF STAKEHOLDERS

Employment Environment

Career Remuneration Management

HC Admin & Performance Services Industrial Management Relation COST COMMITMENT COMPETENCE CONGRUENCE Post- Training and Employee recruitment and Employment Development selection Management

INFORMATION TECHNOLOGY

Vision & Organizational VALUES & Mission Design PARADIGM 9 Strategic Processes of Human Capital System 1. employment Environment 2. employee recruitment and STRATEGIC PLANNING selection 3. Training and Development 4. Performance Management 5. Remuneration 6. Carrier Management 7. Industrial Relation CHANGING OF STRATEGIC ENVIRONMENT& GROWTH OF TOLL ROAD INDUSTRY 8. Post-Employment Management 9. HR Administration & Services

In 2014, the Human Capital Systems Development Stages of Jasa Marga entered the Building Performance stage, where the focus of the Human Resources program was the stratification of organization as the basis of other systems and the integration of the Performance Management System, Remuneration, and Career Management System. As a form of follow-up, the Company took step to improve the organization in terms of Grouping, Stratification and Position Requirements as set forth in the Board of Directors’s Stipulation No. 41/KPTS/2014 dated March 3, 2014.

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Employees Profile[ G4-10, G4-LA12] The number of permanent employees in the Parent Company in 2014 reached 4,692 people, decreased by 3.75% compared with the number of permanent employees in 2013 as many as 4,197 people. The following are presented sequentially the composition of employees by education level, gender, age, and function.

Employee Composition by Function (people)

Function 2013 2014

Operational 1,566 3,222 Non Operational 3,309 1,470

TOTAL 4,875 4,692

Employee Composition by Gender (people)

Gender 2013 2014

Male 3,816 3,661 Female 1,059 1,031

TOTAL 4,875 4,692

Employee Composition by Age (people)

Age 2013 2014

≤25 35 16 26-30 83 91 31-35 283 185 36-40 1,023 914 41-45 1,162 1,078 46-50 1,375 1,383

≥51 914 1,025 TOTAL 4,875 4,692

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Assurance of Employees 1. salary [G4-EC5, G4-LA13] Monthly appropriate work compensation. The Welfare total percentage of the lowest reward disbursed Jasa Marga ensure legal certainty in protecting by the Company amounted to Rp3.608.000. the rights of employees as a form of responsibility This value is more than 180% compare to UMR to fulfill the employees welfare. Commitment of related area. The reward given or employees undertaken as a form of assurance of employees promotion who are competent without differing welfare is to ensure the compensation of minimum the gender or SARA. work in accordance with the provisions of regulations, ensure appropriate career development 2. Holiday Allowance based on performance, facilitating freedom of as part of appreciation for employees and as a association, as well as the fulfillment of other rights. prove of diversity in the company, all employees [G4-DMA] are given the holiday allowance according to their religion. In providing employment compensation, Jasa Marga understands that compensation and benefits 3. Performance Incentive provided by the Company affect the productivity The Company provided performance incentive performance and turnover of employees. as reward of the employees performance Therefore, the Company strives to provide the best to their job. The performance incentive compensations that exceed the provisions of the consists of Traffic Incentive for operational applicable laws (UMR), by taking into account the employees, Bonus as rewards for the Company's Company’s ability, regardless of gender and without performance achievement, and Long Term burdening the employees with excess working hours. Performance Incentive. There is no compulsion to do overtime work and if there is demand for the working overtime then the SOCIAL SECURITY OF EMPLOYEES Company should compensate for the overtime. The Company registered/input all employees to be the participants of Social Employment Security Compensation of employee welfare includes salary (Jamsostek), based on the prevailing rules and and wages, bonus allowance, medication, meals, regulations. uniforms of employees, TRAINING, leave allowance, birth allowance, professional allowance, donation of SELF-COLLECTION INSURANCE PROGRAM OF death/natural disasters, overtime wage, house rent HIGH RISK OPERATIONAL EMPLOYEES allowance, honorarium. With the high risk of operational employees who work on the site, the Company provided additional Employees Remuneration benefit by registering the employees who are the Jasa Marga set remuneration based on the Board main duties and functions are on the sire, in the of Directors’s Stipulation No. 99/KPTS/2014 on the Accident Insurance Program. Clustering and Components of Remuneration and No. 122.1/KPTS/2014 on Monthly Compensation for MANAGEMENT OF POST-EMPLOYMENT Permanent Employees. The change of employees’ To provide convenience and security to employees income arrangement from previously based on the during their work, Jasa Marga provides benefit to years of service with table system to a performance- employees who have reached retirement period. This based system with salary structure is based on is conducted to provide continuity of income after market rate, and complying with the provisions of the completion of their work period in Jasa Marga. applicable employment regulations. Below is the program provided to employees who have reached retirement period:

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Employees Rights [G4-LA2]

Remuneration

Compensation Benefits

Competence Workplace Monthly Annual Job Facilities Appreciation Development Protection

Employee Official Uniform, Workplace Carrier Opportunities, Education & Tetap Official Travel Environment, Formation, Training Fixed Variable Variable Facilities, Implementation Promotion, Position TransportationTetap & of K3 and Work Change, talent Communication, management, Opportunities,Tetap Tetap Company-owned Legal Protection, Employee Basic Salary, Traffic Production House Health facilities, appreciation, Job Compen- Incentive, service, Post Employment Recreation, Sport & sation Overtime Bonus, Program Arts, Holidays Tetap Tetap LongTetap Term Incentive

1. Payroll 3. Performance Incentives appropriate monthly work compensation. The The Company provides performance incentives lowest compensation level for employees’ service in exchange for the performance of employees provided by the Company is Rp3,608,000. in their respective posts. Performance incentives This amount is 180% greater than the minimum consist of Traffic Incentive for employees wage level (UMR) for the respective region. working in operational aspect of the Company The provision of compensation and promotion as a bonus award for the achievement of for competent employees are given without the Company’s performance, and Long-Term distinguishing their gender and SARA. Performance Incentive. 2. religious Allowance as a form of appreciation for employees and evidence of diversity in the Company, all employees religious festivity allowance (Tunjangan Hari Raya) is granted in accordance with the religion of the employee.

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HR Competency Development Program As an implementation of the concept of Competency Based Human Resources Management (CBHRM), the human resources development is based on an improvement of employee competence. Therefore, the Company has formulated a competency model which is equipped with a Competency Dictionary which is a combination of hard skills and soft skills that should be possessed by each individual based on the needs of each unit of competency. Competency Dictionary was created through the issuance of Board of Directors Stipulation No. 183/ KPTS/2013 dated December 24, 2013. [G4-DMA]

HR competency development program carried out through educational program and training of employees by Jasa Marga Development Center Unit as a learning center, which during 2014, the training program for employees focused on the following areas: • Development of technical and non-technical competencies of employees in accordance with job requirements. • Stand-alone program which is equal to training, including sharing knowledge activities, study visits,creating a journal, and others. • Cadres Scholarship, which is scholarship program offered to the young and potential employees.

In the year 2014, the Company has set a target of training days per employee, with the realization of anumber of 3.7 days of training per employee. [G4-LA9]

Training implemented by Jasa Marga per Gender [G4-LA10]

2013 2014 Description Total Days Total Total Total Days Total Total People Participants Programs People Participants Programs Leadership Cadre 940 235 11 278 74 4 Competency Development 8.468 3.501 325 4.000 1.653 52 Core Values, Ethics & Corporate 5.352 2.541 74 6.132 2.761 292 Culture Debriefing Profession Standard 309 151 29 787 94 20 Independent Equivalent Training - - - 6.042 5.111 264 Program Scholarship - - - 135 20 4 Sub Total 15.069 6.428 439 17.376 9.715 638

Employees Turnover [G4-LA1] To keep the turnover rate of employees, the Company provides equal opportunities to the entire employees in developing their carrier path and competitive remuneration package in the form of benefits and services received by the employees. So far, the employee turnover rate of Jasa Marga is very small. This can be seen from the number of employees who resigned from the Company. In 2014, there were only three employees who resigned.

Description 2013 2014

Total Resigned Employees 2 3

Total Employees 4.883 4.692

Percentage (%) 0,04 0,06

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Gender Equality Jasa Marga also ensures the existence of equality in health providence for the female employees which same as the male employees. This equality is also reflected in remuneration, opportunity for career or opportunity to improve competency for male and female employees. As shown in the table below, the only difference occurred only because of work period and employees level.

2013 2014 No Training Type Male Female Male Female 1 Operational 2296 285 1258 202 2 Non Operational 2547 1273 5565 2890 3 Safety 430 33 425 94 Total 5273 1591 7248 3186

Protection of Association Freedom [G4-11] In an effort to create and maintain harmony between Director General of Industrial Relations and Social the company and the employees, the Management Security No. KEP.138/PHIJK-PKKAD/PKB/VIII/2014 on is always attentive and committed to comply with Registration of Joint Working Agreement between PT labor laws, issued by the government. As one of Jasa Marga(Persero) Tbk. with the Jasa Marga Labor commitments of Jasa Marga is to give freedom to Union dated August 25, 2014. [G4-HR10] employees to organize themselves through the Jasa Marga Employee Union (hereinafter called SKJM) Mutual agreement of the Company and subsequent which was established in 1999 whose members are SKJM arranged in a hand book PKB and distributed all employees of Jasa Marga. to all employees. Management and SKJM then formed a team and jointly socialized the aggreement The harmonious relationship between management to the branches. Socialization was conducted and employee union is needed to create a in November-December 2014 that all levels of conducive working atmosphere in order to achieve employees have the knowledge and understanding the common goal, namely the progress of the together. To establish a harmonious relationship Company and welfare of employees. On regular basis with employees, especially related to labor issues of every two years, the Company together with SKJM and policies of the Company, and maintain jointly prepares and renews the joint agreement in the communication with the Labour Union was formed form of Joint Working Agreement (PKB). [G4-DMA] Bipartite Cooperation Institute (LKS-bipartite).

In 2014, Company and SKJMhas succeeded in Stewardship bipartite arrangement consisting of formulating and negotiating deal to discuss the Joint elements of management and the Company with a Working Agreement (PKB) for the period of 2014- term of 1 year. LKS-bipartite established through joint 2016. The result of the PKB agreement provides decision between the Director of the Company and working direction for both employees and the Chairman of the Central Board. In 2014, the material management. The agreement has been registered covered EMC focused on changes in the new human at the Manpower and Transmigration Ministry’s resources management system, particularly related to Directorate General of Industrial Relations and Social the restructuring of remuneration. Security Jakarta based on the Stipulation of the

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Assurance of Occupational Health and Safety (K3)

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Health seminar periodically

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Assurance of Occupational Health and Safety (K3)

Since 2011 the K3 management has been focused to achieve zero accident rate. The program is organized based on the Employment and K3 rules of the local Manpower Department Office and are evaluated and assessed each year.

The Company pays attention and high commitment Commitment to Safety, in terms of Occupational Health & Safety (K3). The company ensures that the safety of employees is Occupational Health and assured during in the work environment of Jasa Safety Marga. Socialization and decisive action continue to be implemented in order to nurture the obedient Employment Policy [G4-DMA] attitude of employees to the regulations of K3. With the new paradigm, namely considering Human Resources (HR) as Human Capital, the Company The Company continues to improve the application puts HR as subject that must be managed properly and the implementation of K3, given the nature so that they can become capital to improve the of the work and the risks faced by employees, Company’s business performance in the long run in especially those who are in charge in the fields of a sustainable way. The Law No. 13 on Employment operational. Efforts is to provide self-protection and becomes a reference for all employment policies safety equipment, as well as training on the K3 that continuously implemented.

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of the Company to ensure that it complies to all Occupational Health and Safety Policy applicable laws and regulations and minimize The Company is quite serious about implementing the violation of human rights in the employment the Management of Health and Safety System relationship. for employees through policies, targets and K3 governance structure and conducting a review The optimization of the management of human every year. Jasa Marga’s commitment to implement resources is implemented by the Company by the occupational health and safety in the working following policies: environment is embodied in the set of corporate 1. assure compliance with employment regulations. policies, which has been arranged in the Board of 2. Uphold the rights of employees. Directors’ Stipulation No. 162/KPTS/2010 September 3. respect for gender equality and carrier path. 30, 2010 on Manual System of Occupational Health 4. Provide programs to enhance hard and soft and Safety Management (SMK3) as well as the competence. Guidelines for Occupational Health and Safety at 5. Increased the utilization of Information Project Construction Company and Circular Letter and Communication Technology (ICT) in No.20/SE-DIR/2010, dated August 3, 2010 on administration and HR services, which has Safetyand Occupational Health (K3). [G4-LA8] encouraged employees to change the way they work to be become more efficient and productive.

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With the Government Regulation No. 50 in 2012 on the Application of Occupational Health and Safety Management System which requires the Company to implement the Occupational Health and Safety Management System (SMK3), then in 2014 the Company review the policy and manual of the existing Occupational Health and Safety Management System and began implementing it in 2015.

The Occupational Health and Safety Management System aims to protect employees, customers, assets, partners and the environment from potential hazards that may occur. Since 2011 the K3 management has been focused to achieve zero accident rate. The program is organized based on the Employment and K3 rules of the local Manpower Department Office and are evaluated and assessed each year.

In accordance with Government Regulation No. 50 of 2012 on the Application of Occupational Health and Safety Management System, the Company formed an Organizing Committee Advisory for Occupational Health and Safety (P2K3) which monitors the implementation of K3 in the Company.

Corporate P2K3 Organization Chart Branch P2K3 Organization Chart

Head Head President Director General Manager

Secretary Secretary VP of Risk & Quality General K3 Expert Management Division

Members Members 1. All Deputy General 1. All VPs Managers 2. General manager 2. All managers 3. Pimpro 3. Safety Officer 4. Safety Officer 4. SKJM Representative 5. SKJM Representative

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Level of Accident at Workplace [G4-LA6]

At Workplace Work Related

Year Minor Seiour Minor Seiour Death Death Injuries Injuries Injuries Injuries (D) (D) (MI) (SI) (MI) (SI) 2012 5 2 1 3 5 0 2013 1 2 1 3 3 0 2014 4 0 2 0 2 0

Accident at workplace: accident occurred at work during work time. Accident of work related: accident occurred when employees are going to or leaving from workplace

Employee Satisfaction Survey The Company regularly conduct surveys on employee satisfaction, so that the Company can receive direct feedback from employees. Through this survey, it is expected that each employe of Jasa Marga may give his or her views on various aspects that determine the level of job satisfaction and can deliver advice and input to the Management Services related with general issues to improve level of satisfaction and productivity of Jasa Marga’s employees.

In 2014 the results of Engagement Ratio Index (ERI) was 2.17. The ERI score in 2014 was better compared to the year of 2013 (ERI score = 1.97). ERI scores from year to year has increased a shown in the following table:

No Year Score 1. 2013 1.97 2. 2014 2.17

Human Rights Protection Transparency and fairness in the recruitment of human resources (HR).The Company utilizes various communication media in announcing the recruitment and selection program for new employees, including through the Company’s official website, that is www.jasamarga.com, cooperate with newspapers that are circulating on national scale, BUMN portals, the Company’s official twitter, online media, posters and career development programs at a number of top universities in Indonesia.Company uphold the principle of equality where the applicants come from a variety of ethnic, region, religion, race and gender.

Gender and Employment Opportunities. The policies on employment opportunities, both on employee placement and carrier development are outlined in the Joint Working Agreement (Perjanjian Kerja Bersama/PKB). Jasa Marga appoints employees to certain positions and develops their carrier selectively and transparently without discrimination (gender, race, ethnicity, religion), by prioritizing the internal sources of the Company by considering the employees performance, ability and competence.

The provision of compensation and promotion for competent employees are given without distinguishing their gender and SARA.

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K3 Achievement In 2013, the Company received Awards for K3 Zero Accident for Palikanci branch and Surabaya- Gempol toll road from Manpower Office of the Cirebon Regency Government and East Java Province. In 2014, the Belmera Branch received K3 Award from Major of Medan, called “Companies With Zero Accident on National Level” by the Minister of Manpower and Transmigration.

Penghargaan Zero Accident cabang Penghargaan Zero Accident cabang Surabaya Penghargaan Zero Accident cabang Penghargaan K3 tingkat Walikota Medan Surabaya Gempol oleh Menteri Tenaga Gempol oleh Gubernur Jawa Timur Belmera oleh Menteri Tenaga Kerja dan untuk kinerja tahun 2013/2014 Kerja dan Transmigrasi Transmigrasi

Occupational Health and Safety Certification This is in line with one of the Company’s missions to carry out business activities based on the application of the rules of Occupational Health and Safety correctly and consistently. The Company’s concerned on safety is evident in the the international standard certification, OHSAS 18001: 2007 (on Occupational Health & Safety Assessment Series), which is integrated with ISO 9001 for all branches starting from in 2010 and to be renewed every 3 years.

OHSAS 18001:2007 Certification

Audit Establishment Validity Registration No Unit / Branch Institution Date Period Number 1. Branch Jagorawi SGS 23-Mar-14 23-Mar-17 ID11/1102954096 2. Branch Cawang-Tomang- SGS 3-Mar-14 3-Mar-17 ID11/1102954092 Cengkareng (CTC) 3. Branch Jakarta-Cikampek SGS 31-Jan-14 31-Jan-17 ID11/1102954070 4. Branch Jakarta-Tangerang SGS 4-Jan-13 4-Jan-16 ID11/1102954016 5. Branch Purbaleunyi SGS 28-Dec-13 28-Dec-16 ID10/1102954054 6. Branch Semarang SGS 25-Oct-14 25-Okt-17 ID11/01882 7. Branch Palikanci 24-Sep-12 24-Sep-15 ID12/02180 8. Branch Surabaya-Gempol SGS 10-May-14 10-May-17 ID11/1102954122 9. Branch Belmera SGS 21-Sep-14 21-Sep-17 ID14/02870

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Developing Community Welfare

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Partnership funds distribute

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Developing Community Welfare

The Community Development Program has disbursed Rp 13.485 billion in 2014 through the implementation of Foster Partners (Mitra Binaan/MB) Program in 2014. The funds were absorbed by 373 foster partners that are scattered throughout the operational areas of Jasa Marga branches.

Jasa Marga is committed to continuously In order to create a harmonious relationship improve the quality of its social and environment with stakeholders, the Company encourages responsibility program (TJSL). The Company each employee of Jasa Marga to take part in believes that the quality improvement of TJSL the sustainability social and environmental program will give a positive impact to the business responsibility programs. growth in the coming years. The sustainability of the social and environmental responsibility Commitment in Social programs always requires innovation in the quality improvement program. The Company does not Community Responsibility [G4-DMA] stop in developing new programs which can reach As a toll road operator and a State Owned a wider community as well as continues to renew Enterprise, the Company contributes to society programs that have brought about significant as part of stakeholders through involving in the impact for stakeholders. Corporate Social Responsibility (CSR) programs which is managed by the Corporate Secretary unit starting from 2014, while the Partnership and Community Development Programs are managed by the Community Development Program Unit since 1992.

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Sources of funds for CSR programs is based on the State Owned Enterprises No. 05/MBU/2007, April Work Plan and Budget Allocation (RKAP) which is 27, 2007 about Partnership Program of State-Owned determined annually, while funds for Partnership Enterprises with Small Business and Community and Community Development Program come from Development (PKBL), which has also been the Company’s Annual Budget which is considered amended by the Regulation of the Minister of State as cost, with a maximum of 2% of net income of Owned Enterprises No. PER08/MBU/2013, dated the previous year. Partnership and Community September 10, 2013 about the Fourth Amendment Development (PKBL) Program is managed by the of the Stipulation of the Minister of State- Community Development Unit, which is stipulated in: Owned Enterprises Number: PER-05/MBU/2007 1. regulation of the Minister of State Enterprises about Partnership Program of State-Owned No. PER-05/MBU/2007 dated April 27, 2007 on Enterprises With Small Businesses and Community SOE Partnership Program with Small Business. Development. The program is implemented through Community Development Unit Program. The targets of the PKBL Unit’s activities are small 2. Partnership and Community Development businesses, in this case the individual or entity Program (CSR) is set out in the Regulation of the businesses and cooperatives that have maximum State Enterprises Ministry No. PER-05/MBU/2007 annual turnover of Rp1,000,000,000 or have assets dated April 27, 2007 on the Partnership Program a maximum of Rp 200,000,000, - outside land and of SOEs with Small Business and Environment buildings. The sources of funds to support the PKBL Development Program. Unit Activities are derived from: 3. regulation of the Minister of State Enterprises 1. Funds for Partnership & Community No. PER-08/MBU/2013 dated 10 September2013 Development Program are derived from the on the Fourth Amendment to the Regulation of Company’s budget which is treated as costat a the Minister State Owned Enterprises No: PER- maximum of 2% of previous year’s net income (in 05/MBU/2007 on the Partnership Program of the accordance with the PER-08/MBU/2013 dated State Owned Enterprises with Small Businesses September 10, 2013). and Community Development Program. 2. The balance of Partnership Program which was 4. Decision of the Board of Directors 230/ derived from the Company’s retained profit that KPTS/2007 on Partnership Program with Small has been allocated up until the end of 2012. Business and Community Development Program, 3. The revenues derived from administrative to set programs and activities of the Community services, deposit and/or current accounts of the Development. Partnership and Community Development program after deducted with operational Community Economic expenses. 4. Partnership Program funds received from other [G4-EC8] Empowerment State Owned Enterprises , if any. The Unit of Partnership and Community Development Program (PKBL) of PT Jasa Development activities to partnership comprising of: Marga(Persero) Tbkwas established by virtue of 1. education, training, research, and apprenticeship Board of Directors’ Stipulation No. 010/KPTS/1997, to improve entrepreneurship, management and dated February 3, 1997. The PKBL Unit was formed technical skills on production. as an implementation of the Stipulation of Minister 2. Marketing and promotion of products. of Finance of the Republic Indonesia No. 316/ KMK/1994 on Guidelines for Small Business and Cooperative Development through the Utilization of Portion of State Enterprises Profit. The stipulation was amended by the Regulation State Minister for

124 PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report Jasa Marga Ensuring Ensuring Synergy Human Resources Occupational Developing Governance Sustainability Customer to Manage Development Health Community of Economic Satisfaction Environment and Safety Welfare Growth Guarantee

The programs of the Community Development Unit of the Company are implemented through the Company’s offices network consists of the Head Office and 9 (nine) branches. The distribution target area and the number of the participants taking part in the Partnership program as of December 31, 2014 and December 31, 2013 are as follows: [G4-SO1]

31 December 31 December No Head Office/Branch Target Partnership Area 2014 2013 1. Head Office Outside operational area of branch offices 9,149 9,149 2. Jagorawi East Jakarta, Bogor, Sukabumi 993 963 3. Jakarta-Cikampek Bekasi, Cikarang, Karawang, Cikampek, 1,361 1,297 Purwakarta 4. Jakarta-Tangerang West Jakarta, Banten 1,082 1,053 5. Cawang-Tomang- South Jakarta, North Jakarta, East Jakarta, 1,117 1,077 Cengkareng 6. Purbaleunyi Central Jakarta 1,288 1,244 7. Surabaya-Gempol East Java 2,264 2,231 8. Semarang Central Java 2,340 2,295 9. Belmera North Sumatera 1,530 1,490 10. Palikanci Cirebon, Majalengka, Kuningan, Indramayu 1,253 1,205

The accumulation of funds that have been allocated under the Partnership Program Loan in 2014 basedon economic sectors is as follows:

Accumulation of Partnership Program Loan Distribution Year 2014 (in Rp)

No Description Realization 2014 I Accumulation of Partnership Fund Distribution: Partnership Loan Industry Sector 67.660361.724 Trading Sector 83.992.250.000 Agriculture Sector 63.062.480.402 Livestock Sector 3.236.000.000 Plantation Sector 2.437.000.000 Fishery Sector 2.702.000.000 Service Sector 88.016.816.048

II Accumulation of Partnership Development Fund Education/Training 14.545.565.967 Promotion, Exhibition & Other Marketing 25.622.938.980

PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report 125 Sustainability 2014 Event Remarks from Remarks from About Company Performance Sustainability Highlights, President President Sustainability Profile Highlights Performance Awards and Commissioner Director Report 2014 Highlights Certification

Foster Partners (Mitra Binaan) The Community Development Program has disbursed Rp 13.485 billion in 2014 through the implementation of Foster Partners (MitraBinaan/MB) Program in 2014. The funds were absorbed by 373 foster partners that are scattered throughout the operational areas of Jasa Marga branches. The foster partners are engaging in variety of business sectors such as Industry, Services, Trade, Fisheries and Animal Livestock.

In addition to lending, Community Development also has conducted monitoring to the foster partners as well as charging the obligations MB, to be rolled back to the people who are still in need. To support the above distribution partnership program, the Community Development also provides support through training events with various modules of activities such as: accounting, entrepreneurship and motivation. To help promote the foster partners, in addition to distributing the form of revolving fund Community Development also provide promotional support to the foster partners in the form of exhibitions.

Details of the Loan Disbursement for Partnership Program 2014 are as follows:

Industry Service Trading Livestock Fishery Total No Branch Rp MB Rp MB Rp MB Rp MB Rp MB Rp MB

1. Jagorawi 235.000.000 5 455.000.000 10 810.000.000 15 - - - - 1.500.000.000 30

2. Cawang- 90.000.000 2 150.000.000 4 1.260.000.000 34 - - - - 1.500.000.000 40 Tomang- Cengkareng

3. Jakarta- 85.000.000 3 40.000.000 2 1.440.000.000 59 - - - - 1.565.000.000 64 Cikampek

4. Jakarta- 555.000.000 11 890.000.000 18 - 0 - - - - 1.445.000.000 29 Tangerang

5. Purbaleunyi 490.000.000 15 95.000.000 2 27 - - - - 1.630.000.000 44 1.045.000.000.00

6. Surabaya- 40.000.000 1 35.000.000 1 30 35.000.000.00 1 - - 1.500.000.000 33 Gempol 1.390.000.000.00

7. Semarang 365.000.000 10 95.000.000 3 31 1 - - 1.500.000.000 45 1.000.000.000.00 40.000.000.00

8. Belmera 70.000.000 2 200.000.000 4 1.075.000.000.00 34 - - - - 1.345.000.000 40

9. Palikanci 170.000.000 5 185.000.000 5 1.095.000.000.00 37 - - 50.000.000.00 1 1.500.000.000 48

TOTAL 2.100.000.000 54 2.145.000.000 49 9.115.000.000 267 75.000.000 2 50.000.000 1 13.485.000.000 373

Since the PKBL (partnership) program was first Improvement of Community introduced in 1992 until 2014, Jasa Marga has provided an accumulation of working capital loans Life Quality This refers to activities to empower and provide amounting Rp 314,796,908,174, with the number of assistance including the development of facilities Foster Partners reaching as many as 22,377 partners. and infrastructure of communities in the operational Business Development Fund to support training and area of Jasa Marga (Persero) Tbk. Community exhibition programs from 1992 to 2014 has reached Development Programs are carried out to give Rp 40,364,696,384. benefits the community in the operational areas of the Company. [G4-EC7] The amount of funds allocated for business coaching (training and exhibition) for the year 2014 In 2013 in accordance with the Regulation of the amounted to Rp 767,888 437, - which consists of Minister of State Owned Enterprises No. PER-08/ training funds Rp 274 346 437, - and promotion MBU/2013 dated September 10, 2013 the scope funds amounted to Rp 493,538,000. of assistance programs to provide transportation cost for outsourced wokers of SOEs were removed and based on the Minister of State Enterprises Regulation No. PER-05/MBU/2013 dated May 1, 2013

126 PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report Jasa Marga Ensuring Ensuring Synergy Human Resources Occupational Developing Governance Sustainability Customer to Manage Development Health Community of Economic Satisfaction Environment and Safety Welfare Growth Guarantee

and PER-08/MBU/2013 dated September 10, 2013, Education the form of the Community Development Program Education is an important part in the development activities of Jasa Marga are focused on several of human character. This factor has encouraged aspects as follows: Jasa Marga to create education programs as part of 1. Help the victims of natural disasters. the CSR activities. As a leading toll road operator in 2. Provide education and/or training assistance. Indonesia, “Jasa Marga’s role in providing education 3. Assistance for health improvement. on safety driving on toll roads has become a key 4. Assistance for the development of infrastructure in creating comfort, smoothness and safety for toll and/or public facilities. road users. The active role of PT Jasa Marga in the 5. Assistance to improve religious facilities. field of safety driving education is reflected in the 6. Assistance related with environment distribution of the book entitled “Aku Tertib berlalu conservation. Lintas” (I Follow Traffic Rules), as many as 1,232 7. social assistance in order to alleviate poverty. books in 2014 during variety of sponsord activities, exhibitions and other corporate events. In addition In 2014, the Company actively involved in to the safety of driving in the toll road, PT Jasa community development activities in natural Marga is also concerned about the introduction of disasters assistance that occurred in Jakarta, namely: the toll road industry among students through the program called “Jasa Marga Goes To Campus”. BUMN Care (For Jakarta Flood) Jasa Marga Goes To Campus Community Development activities at the beginning The Company routinely conducts sharing knowledge of 2014 were carried out by playing active role in activities through the Directors’ Teaching Program tackling the flood disaster that hit 10 locations in the (2012), which was held by each Director such as Jakarta area. Jasa Marga through Jasmapalainvolved at SMA 17-Palembang, SMA Harapan1-Medan, SMA by providing assistance in the form of 1,000 (one Negeri 1-Kuta Selatan Badung, Bali, SMAN 1 Suruh- thousand) emergency aid packages with the details, Salatiga and SMA Negeri 1-Boyolangu-Tulungagung. and distributed to the following areas: Jasa Marga also became resources for public discussion on the issue of toll tariff increase at UIN Sharif Hidayatulah (2012) and Customers Meeting at No. Distribution Area Total University of Indonesia (2013). 1. Ceger 50 packages

2. Kampung Rambutan 50 packages In 2014, the knowledge sharing activities of Jasa 3. Cililitan Kecil 100 packages Marga was designed through ‘Jasa Marga Goes 4. Kecamatan Jatinegara 250 packages To Campus’ program, with the main target of new 5. Condet 100 packages toll road users. The main theme being raised is the 6. Jakarta - Cikampek Toll Road 200 packages issue of “Understanding the Toll Road Industry”. Jasa KM 41 Marga Goes To Campus was held on March 19 to 26, 7. Bumi Nasio Residence 50 packages 2014 at 5 (five) universities, as follows: 8. Bantaran Kali Ciliwung 100 packages 9. Kampung Dukuh 50 packages 10. Kampung Makassar 50 packages TOTAL 1000 packages

PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report 127 Sustainability 2014 Event Remarks from Remarks from About Company Performance Sustainability Highlights, President President Sustainability Profile Highlights Performance Awards and Commissioner Director Report 2014 Highlights Certification

Mobile Library of PT Jalantol LingkarluarJakarta

As a form of responsibility to the • Nurturing communication and socialization community around the toll road, PT Jakarta to the education/schools communities Outer Ring Road (PT JLJ) launched a around the corridors of the toll roads, in the program to educate the public through hope that Companys corporate image will the provision of mobile library. The mobile be positive. library is one of the programs that can be done to promote the culture of reading, • As a social responsibility that should be especially to children. In addition, the shouldered by the Company in the area of mobile library is a form of knowledge operation wherever the Company has the transfer efforts to the schools located operations. around the corridor area of the toll road. The mobile library covers 11 play groups and There are several objectives to be achieved elementary schools around the operating area in the implementation of the mobile library of JORR. The mobile library provided 340 namely: books for elementary schools.

• Stimulate the improvement and awareness about reading activity as part of the culture.

Mobile library activity

128 PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report Jasa Marga Ensuring Ensuring Synergy Human Resources Occupational Developing Governance Sustainability Customer to Manage Development Health Community of Economic Satisfaction Environment and Safety Welfare Growth Guarantee

1. bandung Institute of Technology on March 19, 2014 with Director for HR & General Administration, Najib Muh Fauzan, as the speaker. 2. bina Nusantara University on March 20, 2014with Director Finance, Reynaldi Hermansjah, as the speaker. 3. University of Indonesia on March 21, 2014 with Director of Operations, Hasanuddin, as the speaker. 4. Universitas Siswa Bangsa Internasional on March 24, 2014 with President Director, Adityawarman, as the speaker. 5. Trisakti University on March 26, 2014 with Director of Business Development, Abdul Hadi Hs, as the speaker.

In these events, the Company shares the knowledge with the students about toll road industry in Indonesia. The Company also provides educational assistance such as laptops, projectors and camera. Total participants who have taken part in those events reached 1,709 people. Through ‘Jasa Marga Goes To Campus’ event, the Company expects to improve the interest of the students about toll road industry.

Jasa MArga Goes to Campus

Jasa MargaCare for Banjarnegara Landslide Victim The Company carried out a social care activity for Village, Tiga Ndreket Subdistrict, Karo Regency the landslide natural disaster victims in Banjarnegara which is about 3.5 km from Mt. Sinabung, on Sunday, through Semarang Branch at Jemblung sub- December 21, 2014. Donations were in the form of village, Sampan Village, Karang Kobar Subdistrict, staple foods such as rice, cooking oil, cash, snack Banjarnegara Regency on December 18, 2014. At packages for children, and eat together with local the event, the Company handed over 1,000 aid people. Jasa Marga Care for Sinabung Victims packages containing mats and blankets. program is part of the Company’s caring to the affected residents around the local branch offices, Jasa Marga Care for the Sinabung People and helping to ease their burden as well as providing The Company through Belmera Branch Office moral support as an empathy to residents affected provided assistance to the victims of the Mount by disasters. Sinabung eruption in the Perbaji Village and Selandi

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Free "Mudik"

Social Care Program on Homecoming for activities are: Free Together with Jasa Marga 2014 • To reduce the use of motorcycles for As a form of social care to the communities who will homecoming trip. celebrate Lebaran in their hometown, the Company • To establish a good relationship with the held a program called “Free Homecoming (Mudik) Company’s stakeholders, particularly community Together with Jasa Marga 2014” which involved 808 around the Company. participants, consisting of: • To maintain public trust to the Company • Workers who support the activities of the • To enhance the positive image of the Company. Company (such as drivers, Office Housekeeping Officers, Cleaning Service Officers, Road Cleaning The destinations of the Free Homecoming Program Service Officers,Freelance Officer Security Together with Jasa Marga 2014 were several Guards, and Civilian Security Guards/Hansip) towns on the Java Island. The Free Homecoming and their families who are working at the Head Together with Jasa Marga program is planned to Office,Branches and projects of Jasa Marga. be also carried out in the coming year considering • Local Communities around the Jasa Marga toll the benefits and positive responses from the roads who are in need. participants. In addition to the Free Homecoming Together with Jasa Marga Program, the Company This event shows an effort active role of the also provided aids to the communities who were Company in reducing the number of accidents when affected by disasters through Jasa Marga Care people are travelling to their home town (Mudik) Program. during Lebaran season. In the event, the Company also educates the participants about traffic rulings when passing the toll roads to the bus crews (Drivers and conductors).The purposes of these

130 PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report Jasa Marga Ensuring Ensuring Synergy Human Resources Occupational Developing Governance Sustainability Customer to Manage Development Health Community of Economic Satisfaction Environment and Safety Welfare FeedbackGrowth Sheet Guarantee

We would like to ask all stakeholders to kindly provide feedback after reading this sustainability report by sending email or send this form by fax or mail.

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Thank you for your participation. Corporate Secretary Kindly send this form to: PT JASA MARGA (PERSERO) TBK. Plaza Tol Taman Mini Indonesia Indah Jakarta 13550 Indonesia Tel : 62-21 841 3630, 841 3526, Fax : 62-21 841 3540 Email : jasmar@Jasa Marga.com, sekper@Jasa Marga. co.id Website:PT www.jasamarga.comJasa Marga (Persero) Tbk. 2014 Sustainability Report 131 Sustainability 2014 Event Remarks from Remarks from About Company Performance Sustainability Highlights, President President Sustainability Profile Highlights Performance Awards and Commissioner Director Report 2014 Highlights Certification

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132 PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report Jasa Marga Ensuring Ensuring Synergy Human Resources Occupational Developing Governance Sustainability Customer to Manage Development Health Community of Economic Satisfaction Environment and Safety Welfare Growth Guarantee

PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report 133 Sustainability 2014 Event Remarks from Remarks from About Company Performance Sustainability Highlights, President President Sustainability Profile Highlights Performance Awards and Commissioner Director Report 2014 2014 HighlightsSUSTAINABILITY Certification REPORT

PT Jasa Marga (Persero) Tbk. Plaza Tol Taman Mini Indonesia Indah Jakarta, 13550 Indonesia

Telp. : +6221 841 3630, +6221 841 3526 Fax. : +6221 841 3540 Email : [email protected]

www.jasamarga.com

134 PT Jasa Marga (Persero) Tbk. 2014 Sustainability Report